To The Moon

The Case for SanDisk (SNDK) over all Other Chip Stocks

Sandisk has built its business around NAND flash memory, a technology that is becoming increasingly important as AI workloads require larger, faster storage to support inference, retrieval-augmented generation (RAG) and expanding context windows. Its enterprise SSD portfolio, powered by BiCS8 technology, has strengthened the company's position in AI data centers, where demand for high-capacity, low-latency storage continues to increase. As enterprises scale AI deployments, enterprise SSD adoption is expected to remain a key long-term growth driver.

Beyond product innovation, Sandisk has been reshaping its business model to reduce the cyclicality associated with the NAND market. Its New Business Model framework, based on multi-year supply agreements backed by financial commitments, has improved demand visibility while providing customers with long-term supply assurance. The company has also strengthened its supply chain through the extension of its Kioxia joint venture and investment in long-term DRAM supply through Nanya, enhancing manufacturing flexibility and supporting future growth.

These initiatives have already begun translating into stronger operating performance. In the third quarter of fiscal 2026, data center revenues increased 233% sequentially to $1.47 billion, while non-GAAP gross margin expanded to 78.4% from 51.1% in the previous quarter. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $19.59 billion, suggesting 166.4% year-over-year growth, while the consensus mark for EPS is pegged at $66.54 compared with $2.99 in fiscal 2025, revised up by 1.31% over the past 30 days, reflecting improving profitability as AI-driven enterprise storage demand continues to accelerate.