SNDK
New bull, same memory chip
Sandisk is getting the kind of upgrade that makes value investors sit up straighter: Strong Buy, thanks to what the note calls extraordinary AI-fueled growth and a valuation that still looks cheap enough to make you do a double take.
The big hook here isn’t just that revenue is growing — it’s that Sandisk reportedly delivered 371.6% year-over-year revenue growth and nearly 60 percentage points of gross margin expansion. That’s not “nice quarter” territory. That’s “wait, are we still talking about a NAND company?” territory.
Why the market cares
The thesis is basically this:
- AI and cloud infrastructure demand are turning memory into a hotter commodity than usual
- Operating leverage is kicking in, so sales growth is flowing through more cleanly to profits
- EPS outperformance suggests the company isn’t just riding a wave — it’s paddling pretty well too
The less cyclical, more smug version of Sandisk
The note also points to new long-term contracts and business model changes aimed at reducing cyclicality. Translation: Sandisk wants to stop acting like a roller coaster and start acting like a steadier infrastructure supplier. If that works, the market may start valuing it less like a boom-bust chip name and more like a business with a real moat.
Big picture: when a stock is this cheap and the growth story is this loud, Wall Street tends to revisit its assumptions — loudly, and usually after the move has already started.