Sandisk Corporation (SNDK): A Bull Case Theory

We came across a bullish thesis on Sandisk Corporation (SNDK) on wallstreetbets subreddit by b0men. In this article, we will summarize the bulls’ thesis on SNDK. Sandisk Corporation (SNDK)’s share was trading at $42.5 as of 13th June.

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A data centre room with cloud technology, illustrating the enterprise application software services.

Sandisk, now operating independently following its separation from Western Digital, is quietly carving out a powerful niche in the AI infrastructure arms race. Its Gen5 enterprise SSDs were recently certified by NVIDIA for datacenter use, officially embedding the company into the AI server vendor chain. The standout innovation is Sandisk’s proprietary High Bandwidth Flash (HBF) architecture—developed fully in-house—designed for massive capacity and throughput, tailored specifically for AI workloads.

This positions Sandisk as a one-of-a-kind supplier with differentiated technology. Complementing this, the company is shipping BiCS8, one of the most power-efficient flash technologies currently available. Cloud hyperscaler traction is rising rapidly: 12% of total output went to AWS, GCP, and Azure this quarter, up from 8% a year ago, reflecting intensifying AI-related spend. This growth appears sustainable, as internal reports from major tech companies show transformative AI deployment efforts already yielding dramatic productivity gains.

While the company still has a consumer-facing segment, its real upside lies in enterprise AI, where it’s now gaining relevance in billion-dollar deal cycles. Financially, Sandisk posted $1.7B in revenue and $220M in adjusted free cash flow this quarter, with $1.5B in cash on hand.

Despite soft gross margins (22.7%) due to pricing and NAND volatility, management is focused on restoring profitability. The company is also making moves in gaming, EVs, and content creation, expanding its flash technology footprint. Risks remain, including thin options liquidity and lingering consumer weakness, but with unique AI-aligned assets and accelerating cloud demand, Sandisk offers asymmetric upside.

For now, it’s a high-risk bet with potentially transformative payoff.

Previously, we covered a bullish thesis on Intel (INTC) by Jellym9s on wallstreetbets in December 2024, framing it as a turnaround bet anchored by its Foundry Services and geopolitical tailwinds favoring domestic chip production. The thesis outlined a potential strategic pivot away from lagging product segments toward becoming the U.S. equivalent of TSMC. The thesis on Sandisk (SNDK) by b0men extends this theme of U.S.-based semiconductor resurgence, but through the lens of AI infrastructure. Sandisk’s proprietary enterprise SSD technology and early traction with hyperscalers signal a niche, high-performance role in AI datacenters, offering complementary upside to Intel’s foundry ambitions.

Sandisk Corporation (SNDK) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Sandisk Corporation (SNDK) at the end of the first quarter which was 0 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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.