Is SNDK a good stock to buy? We came across a bullish thesis on Sandisk Corporation on r/AIPortfolios by manojs. In this article, we will summarize the bulls’ thesis on SNDK. Sandisk Corporation’s share was trading at $709.71 as of March 20th. SNDK’s forward P/E was 18.08 according to Yahoo Finance.
Sandisk Corporation develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the United States and internationally. SNDK has surged sharply following a strong earnings print and improving sentiment around AI-driven memory demand, with shares rising from a prior close of $777.30 and implying a 6.6% move toward a target price of $828.47.
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The company delivered robust Q2 results, reporting $3.02 billion in revenue, up 25% year-over-year, alongside EPS of $2.13, both exceeding expectations. Growth was primarily driven by its data center segment, which surged 64% on the back of accelerating AI workloads, reinforcing SNDK’s positioning as a key beneficiary of rising demand for NAND storage solutions.
Looking ahead, management issued bullish Q3 guidance, forecasting EPS in the range of $12 to $14 and gross margins of 65–67%, signaling strong operating leverage and continued pricing strength. This outlook is supported by tightening supply dynamics in the NAND market, where AI-driven demand is outpacing capacity additions, enabling margin expansion and improved profitability across the cycle. Analyst sentiment has also turned increasingly constructive, with firms like Citi reiterating a Buy rating and raising price targets, while KGI upgraded the stock to Outperform, collectively implying meaningful upside potential from current levels.
From a technical perspective, momentum remains firmly positive, with the stock trading at a 52-week high, supported by rising moving averages, a bullish MACD crossover, and an RSI near 67, indicating strength without being excessively overbought.
Broader semiconductor tailwinds, particularly in the memory segment where growth is expected to exceed 30%, further reinforce the favorable backdrop. Taken together, strong fundamentals, supportive industry dynamics, and positive technical signals position SNDK for continued upside in the near term.
Previously, we covered a bullish thesis on Seagate Technology Holdings plc (STX) by fortitudelkw in January 2025, which highlighted its positioning as a key beneficiary of AI-driven cloud storage demand, HAMR technology advantages, and improving margins. STX’s stock price has appreciated by approximately 280.13% since our coverage. manojs shares a similar view but emphasizes on NAND-driven growth, strong earnings momentum, and tightening supply supporting pricing power.
Sandisk Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held SNDK at the end of the fourth quarter which was 61 in the previous quarter. While we acknowledge the risk and potential of SNDK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNDK and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
