BlockBeats News, August 8th. After SanDisk's latest financial report, Bank of America continues to maintain a Buy rating and believes that the market has underestimated the company's long-term profitability driven by AI storage demand.Bank of America reiterated a Buy rating on SanDisk and maintained a $2500 price target, implying around 85% upside from the reference price of $1350.5. This price target is based on an expected EPS of $255 in 2027 and a valuation of around 10 times P/E ratio.SanDisk was previously seen by investors as a typical cyclical stock, but Bank of America believes that with the development of artificial intelligence driving data storage demand growth and the increase in enterprise SSD penetration, the company's current level of profitability may be more sustainable than the market expects.Financial data shows that SanDisk's revenue in the fourth quarter reached $8.97 billion, a 51% increase QoQ, exceeding the company's previous guidance of $7.75 billion to $8.25 billion. About two-thirds of this growth came from price increases, with the rest coming from an increase in storage bit shipments.During the same period, the company's gross margin rose to 84.6%, up from 78.4% in the previous quarter, and also exceeding the expected range of 79% to 81%.Bank of America expects SanDisk's EPS for the fiscal year 2027 to grow by 229% to $233.85, with revenue increasing by 160% to $52.6 billion. The company expects revenue for the next quarter to be $10.3 billion to $10.8 billion, with EPS of $0.44 to $0.46, and the gross margin is expected to remain high at 83% to 85%.Bank of America stated that there are currently no apparent signs that SanDisk's storage prices and profitability have reached a peak, and the expansion of AI infrastructure may continue to support the storage industry's business cycle.