According to Bernstein, the investment bank raised its target price for SanDisk (SNDKV-US) from $1,700 to $3,000 on June 30, a 71% increase. The upgrade reflects a shift in how long-term supply agreements (LTAs) in the memory industry operate. The new contracts include fixed pricing mechanisms, higher customer default penalties through financial commitments, and extending the terms to three to five years—thereby reducing earnings volatility related to fluctuations in the commodity cycle. Bernstein’s stress-testing model shows that, assuming 60% of SanDisk’s shipments are covered by LTAs, even if NAND chip prices fall 72% from their peak to $0.11 per GB, the company’s earnings per share in 2030 could still reach $214; without LTA protection, it would be only $81. The new valuation is based on 11 times Bernstein’s forecast of 2028 earnings per share of $272.