SanDisk Corporation stock climbed 6.7% in morning trading Tuesday after Rosenblatt Securities started coverage of the company with a buy rating and a price target of $2,400.

Analyst Kevin Cassidy said in a research note that new AI compute platforms are creating an opportunity to shift NAND flash from a commodity storage product into a system-critical component of AI infrastructure. He noted that expanding model sizes are prioritizing density, performance, and endurance over the lowest possible price.

Rosenblatt pointed to SanDisk's BiCS8 and BiCS10 platforms as improving storage density with fewer 3D layers than competing products, which maintains cost and performance advantages in AI-oriented enterprise storage.

SanDisk joined the S&P 100 index on Monday, which required index-tracking funds to purchase shares.

CEO David Goeckeler sold approximately $53.3 million worth of shares on September 17 under a pre-planned Rule 10b5-1 arrangement.