Sandisk Corporation (SNDK): A Bull Case Theory 

We came across a bullish thesis on Sandisk Corporation on Value investing subreddit by Icy_Agent_266. In this article, we will summarize the bulls’ thesis on SNDK. Sandisk Corporation’s share was trading at $205.35 as of December 2nd. SNDK’s forward P/E was 15.55 according to Yahoo Finance.

Sandisk Corporation develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the United States, Europe, the Middle East, Africa, Asia, and internationally, following its recent spin-off, is emerging as a pure-play NAND flash memory company, positioned to benefit from surging demand driven by AI workloads and hyperscaler adoption.

NAND flash prices have risen 15-25% since late Q3, fueled by cloud giants like Google and Amazon shifting from HDDs to SSDs to support faster inference and model serving. TrendForce anticipates over 30% NAND demand growth in 2025, with the market exceeding $100 billion. Major suppliers, including Samsung, SK Hynix, and Sandisk, are deliberately holding back capacity, setting the stage for what analysts are calling a potential memory super-cycle.

SNDK’s business is focused on SSDs, flash cards, and embedded chips, benefiting from a lean structure post-spin, which enhances operational efficiency. The company is set to report its first major standalone quarter on November 6 (Q1 FY26), with Street consensus expecting $2.3 billion in revenue and $0.70 EPS. Bull case scenarios, driven by strong spot pricing and expanding margins, could see revenues surpass $3 billion with EPS between $1.10-1.30, reflecting potential 50-60% margins. Valued at approximately 18x forward P/E, SNDK remains relatively attractive versus peers like Micron, given its pure NAND exposure.

Key upside drivers include exponential storage demand from AI workloads, long-term contracts with hyperscalers locking in supply, and ongoing tightness in memory inventory. Even absent a dramatic market shift, the combination of a clean spin-off, favorable NAND pricing, and structural demand growth positions SNDK as a compelling investment opportunity, with the upcoming earnings release likely to validate the narrative of a super-cycle in memory.

Previously we covered a bullish thesis on Seagate Technology Holdings plc (STX) by fortitudelkw in January 2025, which highlighted the company’s HAMR technology and AI-driven cloud storage growth. The company’s stock price has appreciated approximately by 146.69% since our coverage. The thesis still stands as storage demand expands. Icy_Agent_266 shares a similar perspective but emphasizes Sandisk’s pure-play NAND exposure and hyperscaler-driven SSD demand.

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Disclosure: None.