Core Thesis - Sandisk Corporation is positioned as a pure-play NAND flash memory company, benefiting from increasing demand driven by AI workloads and hyperscaler adoption [2][5] Company Overview - Sandisk Corporation specializes in developing, manufacturing, and selling data storage devices and solutions using NAND flash technology globally [2] - The company is set to report its first major standalone quarter on November 6, with expectations of $2.3 billion in revenue and $0.70 EPS [4] Market Dynamics - NAND flash prices have increased by 15-25% since late Q3, driven by cloud giants transitioning from HDDs to SSDs [3] - TrendForce forecasts over 30% growth in NAND demand by 2025, with the market projected to exceed $100 billion [3] Financial Projections - Bull case scenarios suggest revenues could exceed $3 billion with EPS between $1.10-1.30, reflecting potential margins of 50-60% [4] - Sandisk is valued at approximately 18x forward P/E, making it relatively attractive compared to peers like Micron [4] Growth Drivers - Key growth drivers include exponential storage demand from AI workloads, long-term contracts with hyperscalers, and ongoing tightness in memory inventory [5] - The combination of a clean spin-off, favorable NAND pricing, and structural demand growth positions Sandisk as a compelling investment opportunity [5]
Sandisk Corporation (SNDK): A Bull Case Theory