SNDK breaks $1250 line as Microsoft, Meta & Seagate Fuel AI Demand Frenzy
The stock is staging a sharp single-day rebound following a ~50% pullback from its June all-time high of $2,354.
SanDisk (SNDK) is surging by 22% and trading around $1,260. The stock is staging a sharp single-day rebound following a ~50% pullback from its June all-time high of $2,354.
Bullish comments on AI infrastructure and compute demand from Microsoft, Meta, and Seagate (which reported strong earnings) reinforced strong read-throughs for data center flash storage.
Morgan Stanley reiterated a bullish stance, highlighting persistent enterprise NAND flash memory shortages and forecasting a 25%+ NAND price increase from Q2 to Q3 2026. Samsung also noted that memory supply constraints will extend well into 2027.
SNDK entered deeply oversold territory after dropping heavily from its peak, prompting aggressive dip-buying ahead of its Q4 fiscal earnings report scheduled for August 5.
The expansion of data infrastructures and generative AI models maintains supply constraints on high-capacity NAND memory, allowing SanDisk to retain strong pricing power.: Signing long-term supply agreements secures revenue visibility and partially protects the company from instantaneous fluctuations in the spot market. The ramp-up of high-efficiency manufacturing lines supports projected operating margins close to 45% and strong free cash flow generation.
Intrinsic cyclicality of flash memory: Although AI demand creates a short-term super-cycle, NAND memory remains a commodity subject to the risk of an overall increase in infrastructure capacity by 2028, which could compress margins in the long term.
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