Core Insights - SanDisk's stock has surged by 1,561% over the past year, primarily due to severe shortages of high-bandwidth memory (HBM) essential for AI infrastructure [1] - The company's Q2 2026 revenues reached $3 billion, marking a 61% year-over-year increase, with earnings per share rising to $6.20, a fivefold increase [1] - HBM supply shortages are projected to persist until at least 2028, significantly impacting prices and availability of various electronic devices [1] Financial Performance - SanDisk's Q2 2026 revenues were reported at over $3 billion, a 61% increase compared to the previous year [1] - Earnings per share for Q2 2026 were $6.20, reflecting a fivefold increase from prior periods [1] - Q3 guidance anticipates revenues of $4.6 billion, representing a 172% year-over-year gain, with projected earnings per share of $13 [1] Market Dynamics - The demand for HBM chips, driven by AI data centers, is expected to outstrip supply for the next decade, leading to increased prices for consumer electronics [1] - A specific example of price escalation is noted with Crucial Pro's 64GB DDR5 RAM kit, which rose from $145 in October 2025 to $790 in February 2026 [1] - The ratio of memory chips in overall materials costs for manufacturers has increased from 15% to approximately 40% [1] Valuation Insights - Analysts suggest that at SanDisk's current earnings rate, a 26x earnings multiple would value the stock at over $1,900 per share, indicating significant upside potential [1] - SanDisk is positioned as a more stable investment in the AI sector compared to pure AI stocks, due to its involvement in HBM production [1]
Goldman Named The Issue That's Pushing SanDisk Stock to the Moon