Core Viewpoint - Sandisk (SNDK) shares have increased approximately 435% since June, with analysts projecting further upside due to strong demand from data centers and artificial intelligence, alongside a significantly undersupplied NAND memory market [1][3]. Industry Insights - The NAND market is expected to tighten further due to the increasing demand from artificial intelligence data centers, which are beginning to consume a substantial portion of global memory and flash production capacity [2]. - Analysts predict that NAND will be in undersupply by 2026, with some estimates extending this undersupply to late 2027, indicating a bullish outlook for SNDK stock [3]. - The demand for NAND is anticipated to rise as artificial intelligence continues to drive the need for data centers, which are essential for data storage, speed, and performance [4]. Market Demand - There are approximately 3,000 data centers in the U.S., and a report from McKinsey estimates that $5.2 trillion will be required for AI infrastructure investments by 2030, further increasing the demand for NAND memory in an already constrained market [5]. - McKinsey's analysis suggests that the demand for AI-ready data center capacity will grow at an average rate of 33% annually from 2023 to 2030, reflecting an ongoing trend that will further boost NAND demand [6]. Company Performance - In its latest quarter, Sandisk reported an adjusted EPS of $1.22, exceeding estimates by $0.33, and revenue of $2.31 billion, which represents a year-over-year increase of 22.6% and surpassed expectations by $160 million [7].
This Semiconductor Stock Is Up 435% in the Past 6 Months and Can Gain Another 40% from Here