Sandisk (SNDK +1.80%) has soared more than 600% so far this year. But it may go even higher. Late last week, Harlan Sur, JPMorgan Chase‘s tech stock analyst, reinstated coverage of the memory supplier with an overweight rating and a $2,250 price target.

With the stock currently trading around $1,786, that would represent a 26% increase in the share price. Sur’s reasoning for the hefty price target had three components. Let’s take a look at them.

First, he points out that Sandisk is one of the top manufacturers of NAND flash memory in a market where demand is significantly outpacing supply.

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NAND memory is a type of non-volatile flash storage that retains data even when the device is powered off. And AI data…