Goldman Sachs: SanDisk NBM Locks in 80% Gross Margin, Target Price Seen at $2,200

TechFlow reports that according to Chaoxiang Research, Goldman Sachs' September 9, 2026, research report indicates that SanDisk disclosed at the Communacopia conference that long-term NBM agreements already cover 50% and 67% of the planned shipment volumes for FY27 and FY28. Even under a bearish scenario where NAND prices decline, floor price clauses can still support gross margins of approximately 80%. Supply-side growth remains constrained, with new capacity from Chinese competitors largely absorbed by the domestic market. HBF and KV Cache have unlocked long-term growth potential, while low capital intensity of around 5% supports bit growth. The company has executed approximately $4.5 billion in share buybacks.

Goldman Sachs maintains a Buy rating with a 12-month target price of $2,200, implying a 26.6% upside from the current stock price of $1,738. The target price is based on a 20x P/E ratio multiplied by normalized earnings per share of $110. Downside risks include failure to realize long-term structural changes in NAND pricing, YMTC's continuous roadmap iteration, and SanDisk's eSSD market share falling short of expectations.