SNDK
The “it’s expensive” crowd, meet the spreadsheet
SanDisk has already ripped more than 28x in a year, which is the kind of move that makes people assume the easy money is gone. But this note says the rally wasn’t just multiple-mania — it was driven by real earnings growth, with the stock still sitting around 5–6x forward earnings.
The contract angle is the whole ballgame
The bullish pitch here is that SanDisk’s signed NBM contracts could represent about $90 billion of revenue potential at floor pricing. That’s roughly half of the company’s current market cap, and the note pegs those contracts at gross margins around 80%. In other words: this isn’t just a pretty chart. It’s a business model with a very loud cash-register soundtrack.
Why investors should care
The analyst is basically saying Wall Street is still treating SanDisk like a cyclical memory trade, while ignoring the contractual backlog that could keep the party going. They also compare that setup with Micron, where the market-cap coverage from similar contracted revenue is much smaller — a subtle way of saying SanDisk may have the more interesting risk/reward.
Big picture: when a stock is already up 28x and someone still says “buy,” that’s either a red flag or a clue. In this case, the market gets a fresh reminder that cheap-looking names can stay cheap-looking right up until the contracts start doing the heavy lifting.