On Tuesday, storage stock SanDisk surged 10% during the session.



Bernstein raised SanDisk's target price from $1,700 to $3,000, stating that a new generation of Long-Term Supply Agreements (LTAs) is reshaping the business model of the storage industry.

The new LTAs adopt fixed or range-based pricing, introduce financial guarantees, and extend terms to 3–5 years, creating two-way constraints that significantly reduce earnings volatility.

Stress tests show that even with sharp price drops, earnings covered by LTAs remain far above those in traditional cycles.
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