Is SNDK a good stock to buy? We came across a bullish thesis on Sandisk Corporation on Kumquat Research’s Substack. In this article, we will summarize the bulls’ thesis on SNDK. Sandisk Corporation’s share was trading at $1,642.00 as of June 8th. SNDK’s trailing and forward P/E were 60.14 and 27.17 respectively according to Yahoo Finance.
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Sandisk Corporation (SNDK) is emerging as one of the strongest beneficiaries of the ongoing NAND flash memory shortage driven by accelerating AI data center demand and constrained industry supply. The company operates as a pure-play NAND manufacturer through its long-standing joint venture with Kioxia, where both companies share production, R&D, and capital expenditures for NAND fabs in Japan. This structure allows Sandisk to compete effectively against larger players such as Samsung, SK Hynix, and Micron while controlling approximately 15% of the global NAND market.
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The investment thesis has strengthened dramatically as NAND pricing surged following years of underinvestment and disciplined supply growth across the memory industry. Sandisk’s financial performance has inflected sharply, with fiscal Q3 2026 revenue rising 251% year-over-year to $5.95 billion, gross margins expanding to 78.4%, and non-GAAP earnings reaching $23.41 per share, compared to a loss just a year earlier.
Management’s Q4 guidance implies nearly $5 billion in quarterly net income, highlighting the magnitude of the current upcycle. Importantly, major memory manufacturers are prioritizing high-margin HBM and advanced DRAM production for AI workloads rather than expanding NAND capacity, creating a prolonged supply-demand imbalance in NAND that could persist for years.
With minimal new greenfield NAND investments planned across the industry, Sandisk stands out as the only meaningful pure-play NAND opportunity positioned to capitalize on sustained pricing strength, rising SSD demand, and continued AI infrastructure expansion, creating a compelling bullish setup despite the sector’s historically elevated volatility.
Previously, we covered a bullish thesis on Seagate Technology Holdings plc (STX) by fortitudelkw in January 2025, which highlighted the company’s positioning as a major beneficiary of AI-driven cloud storage demand through its HAMR technology and expanding high-capacity HDD offerings. STX’s stock price has appreciated by approximately 710.47% since our coverage. Kumquat Research shares a similar view but emphasizes on Sandisk Corporation’s (SNDK) pure-play NAND exposure and tightening industry supply dynamics.
Sandisk Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 114 hedge fund portfolios held SNDK at the end of the first quarter which was 75 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.
