Sandisk Corporation develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company provides solid state drives for desktop and notebook PCs, gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones, tablets, notebook PCs and other portable and wearable devices, automotive applications, Internet of Things, industrial, and connected home applications, as well as removable cards, universal serial bus drives, and wafers and components. It sells its products to computer manufacturers and original equipment manufacturers, datacenters, private cloud customers, cloud service providers, resellers, distributors, and retailers through its sales personnel, dealers, distributors, retailers, and subsidiaries. Sandisk Corporation was incorporated in 2024 and is based in Milpitas, California.
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Kioxia HD to Build New AI Semiconductor Plant in Iwate Prefecture
Kioxia Holdings will build a third manufacturing building at its Kitakami plant in Iwate Prefecture to meet rising demand for AI, according to multiple sources. The new building will produce the 10th-generation product, the latest semiconductor for AI data centers, which began sample shipments in July. One source said Kioxia HD is expected to officially announce the production expansion plan on the evening of the 27th. The company had been cautious about capital investment due to market downturn risks, but the stock market has called for investment to compete with Chinese and Korean rivals, and this decision is seen as a step forward. Kioxia HD, together with its partner SanDisk, plans to apply for government subsidies, and President Hiroo Ota and SanDisk CEO David Goeckeler are scheduled to visit Prime Minister Sanae Takaichi that afternoon.
Jim Cramer Highlights Sandisk's Massive Buybacks After Stock Surge
Jim Cramer highlighted Sandisk Corporation's capital-return plans on the August 24 episode of Mad Money, noting that the memory maker intends to return 100% of its excess cash to shareholders, with $4.5 billion in buybacks in its fiscal fourth quarter and an additional $14 billion added to its repurchase authorization. The stock has surged 529% year to date, making it the top performer in the S&P 500. Sandisk's fiscal 2026 revenue reached $20.25 billion, up 175% from fiscal 2025, with GAAP net income of $11.43 billion versus a $1.64 billion loss a year earlier. The company's fourth-quarter non-GAAP gross margin hit 84.6%, up from 78.4% in the previous quarter and 26.4% in the year-ago quarter. Sandisk has signed agreements with eight customers covering about 50% of bits in fiscal 2027 and roughly two-thirds in fiscal 2028, aiming to reduce exposure to the NAND cycle. Hedge fund participation increased to 128 funds in Q2 from 114, while short interest stands at 7.36% of the float.
Micron CEO Says AI Demand Has Ended Memory Industry's Boom-Bust Cycle
Micron Technology CEO Sanjay Mehrotra told CNBC that the memory industry has emerged from its historical boom-and-bust cycle, driven by surging demand from artificial intelligence infrastructure. He noted that data center memory demand now exceeds supply by 50%, with customers buying everything Micron can manufacture, while strong demand also comes from autonomous vehicles, edge AI devices, and robots. The comments come as the Roundhill Memory ETF has fallen 27% over the past two months, but Mehrotra's remarks suggest the downturn may be short-lived. Micron, along with peers Sandisk and SK Hynix, now trades at attractive forward earnings multiples compared to the Nasdaq-100's 24 times, making them potential buys for investors seeking AI-driven growth.
Jim Cramer says data center backlash favors big tech hyperscalers
Jim Cramer said Monday that growing political opposition to data center construction is shifting the advantage toward the largest technology companies at the expense of smaller, speculative developers. The "Mad Money" host said the data center thesis, perhaps the greatest investment theme in a generation, is now under attack and may never be the same, citing Pennsylvania and Texas as illustrations where governors once advocates for data center growth have lately demanded more stringent conditions on new projects. Amazon, Alphabet, Microsoft, and Meta are best positioned to navigate the new landscape, Cramer argued, because the scale of their balance sheets lets them clear regulatory and community hurdles that would be prohibitive for smaller operators. He added that if speculative developers exit the market, hyperscalers could face less pressure on land, power, and workforce availability, which might translate into lower construction costs as they press ahead with AI infrastructure. Cramer cautioned that with the buildout trajectory in question, the market may no longer justify elevated multiples for suppliers like GE Vernova, which makes gas turbines, or memory-chip companies including Micron, Sandisk, Western Digital, and Seagate, regardless of how robust end demand proves to be. Despite his more cautious outlook for parts of the data center trade, Cramer stopped short of calling the broader theme finished, saying rules can be crafted and communities can be appeased, but the unbridled buildout is most likely over.
Sandisk Shares Jump 25% in a Month on Datacenter Strength
Sandisk shares have jumped 24.9% in the past month, outperforming the Zacks Computer and Technology sector's return of 5.6% and peers Micron, Seagate and Western Digital. The outperformance is attributed to rapid expansion of Sandisk's Datacenter business, which saw revenues surge 437% year over year to $5.15 billion in fiscal 2026. Sandisk's eight New Business Model agreements are expected to represent more than 50% of its bits in fiscal 2027 and roughly two-thirds in fiscal 2028, with signed NBMs representing a minimum of $93.9 billion in expected revenues. For the first quarter of fiscal 2027, Sandisk expects revenues in the $10.3-$10.8 billion range, up 51% sequentially and 372% year over year, with non-GAAP gross margin in the 83-85% range and earnings in the $44-$46 per share range. The Zacks Consensus Estimate for first-quarter 2027 earnings is currently pegged at $46.23 per share, up over the past 30 days, while fiscal 2027 earnings estimates are pegged at $213.30 per share, up 10.6% over the past 30 days.
Direxion Daily Semiconductor Bull 3X ETF Drops 8% on China Chip Threat
The Direxion Daily Semiconductor Bull 3X Shares ETF fell 8% through 12:12 p.m. ET after reports that the Trump Administration will allow Apple to buy memory chips from Chinese suppliers ChangXin Memory Technologies and Yangtze Memory Technologies Corp. The decision threatens U.S. memory makers Micron and Sandisk, with Micron being the ETF's largest holding at 8.6%. Micron stock dropped about 5%, while Sandisk fell roughly 6%, and other top holdings including AMD and Nvidia also traded lower. The leveraged ETF had surged 32% in the first two weeks of August before reversing course.
Sandisk Stock Drops on Apple China Chip Sourcing Report
Sandisk stock sank 7.5% through 11:40 a.m. ET Monday after WCCTech reported the Trump Administration will permit Apple to purchase memory chips from Chinese suppliers ChangXin Memory Technologies and Yangtze Memory Technologies Corp. Yangtze Memory Technologies competes directly with Sandisk in NAND memory chips, while ChangXin Memory Technologies focuses on DRAM chips but plans to produce high-bandwidth memory that would rival Sandisk's high bandwidth flash. The reported sourcing would only apply to Apple products sold in China, limiting the immediate threat. Lynx Equity Research analyst KC Rajkumar noted neither Chinese company has sufficient product certification or production capacity to seriously challenge Sandisk yet, though ChangXin Memory Technologies raised $8.6 billion in a Shanghai IPO and Yangtze Memory Technologies has filed for an IPO hoping to raise $4.9 billion.
Alibaba slides on discounted share sale, chipmakers dip premarket
Alibaba's U.S.-listed shares dropped 3.4% in premarket trading after the Chinese e-commerce giant launched a $10.2 billion share sale at a steep discount to fund its AI investments. The move added to broader investor unease over how AI spending is straining hyperscalers' free cash flow. Most chipmakers declined, with Sandisk down 5%, Seagate off 3.2%, and Coherent down 4.7%, while Nvidia gained 0.1% ahead of its earnings report Wednesday. Birkenstock gained over 3%, rebounding from near its 52-week low after last week's fiscal third-quarter results showed revenue of €719.5 million, above forecasts, and raised full-year revenue growth guidance of 15% in constant currency. PulteGroup gained 2.1% after Wolfe Research upgraded the homebuilder to Outperform from Peerperform, citing superior earnings durability versus peers.
Hedge funds and mutual funds split on AI trade, Goldman says
Hedge funds and mutual funds took sharply different approaches to individual AI stocks during the second quarter, according to Goldman Sachs. Hedge funds bought Microsoft and Amazon while mutual funds reduced positions in both, and hedge funds cut exposure to Alphabet, Meta Platforms, Nvidia, Broadcom, Lam Research, Marvell Technology, Cisco Systems, Hewlett Packard Enterprise and Applied Materials. Mutual funds bought Advanced Micro Devices, Micron Technology and Sandisk while hedge funds reduced exposure to those stocks. Goldman identified 12 AI infrastructure stocks purchased by both groups, including American Electric Power, Bloom Energy, CoreWeave, Flex, NiSource, Seagate Technology, Talen Energy and Xcel Energy. The analysis covers 991 hedge funds with $5.4 trillion of gross equity positions and 504 large-cap active mutual funds with $4.6 trillion in equity assets.
Sandisk Fair Value Estimate Rises 20% After Investor Day
Simply Wall St has raised its fair value estimate for Sandisk from US$1,772.91 to US$2,126.17, a roughly 20% uplift, following the company's investor day and earnings. The revision reflects higher revenue growth assumptions of 38.69% versus 31.49% previously, a profit margin forecast of 68.13% versus 47.93%, and a lower future P/E multiple of 10.80x versus 24.46x. JPMorgan called Sandisk uniquely positioned for a structural inflection in NAND, while Evercore ISI highlighted long-term targets of mid-to-high teens revenue growth through FY30. Jefferies and Citi trimmed price targets in August 2026 after an in-line September outlook and more muted pricing.
SanDisk Stock Surges 3,505% on $93.9 Billion Contract Backlog
SanDisk stock has surged 3,505% over the past year to $1,600.62, driven by $93.9 billion in minimum contracted revenue locked in with eight data-center customers. Fiscal fourth-quarter revenue rose 371.59% year over year to $8.96 billion, with non-GAAP EPS of $39.25 beating the $33.28 consensus. CEO David Goeckeler said demand is growing faster than supply and expects bids to remain on allocation beyond calendar year 2027. However, Chinese rival YMTC now holds about 14% of global NAND shipments, and January 2027 options show a 5.87 put/call ratio as traders hedge against a potential supply glut.
Sandisk Launches NAS SSDs to Challenge Micron and Seagate
Sandisk Corporation has expanded into high-performance network-attached storage with the SANDISK NAS 600 SATA SSD and SANDISK NAS 800 NVMe SSD, targeting prosumers, creative professionals, and small businesses. The NAS 600 delivers sequential read speeds of up to 560 MB/s and endurance of up to 2,500 TBW on the 4TB model, while the PCIe 5.0-based NAS 800 offers sequential read/write speeds of up to 14,900/13,200 MB/s and endurance of up to 14 PBW. The launch strengthens Sandisk's competitive positioning against Micron Technology and Seagate Technology, with Micron representing a more direct NAND and SSD competitor and Seagate challenging through high-capacity hard drives and tiered-storage architectures. Sandisk shares have appreciated 575.7% year to date, and the stock trades at a forward 12-month price/earnings of 7.31X compared with the broader sector's 20.92X. For fiscal 2027, the Zacks Consensus Estimate for Sandisk's earnings is pegged at $213.30 per share, up 10.62% over the past 30 days and suggesting 200.93% growth from the year-ago estimate.
Sandisk stock could climb to roughly $3,387 per share within five years, implying about 108% upside from its August 18, 2026 price, according to a Motley Fool analysis. The projection assumes fiscal 2032 revenue near $101.2 billion, built on management's mid-to-high-teens annual growth target from fiscal 2028 through 2030 and a steady forward price-to-sales multiple of 4.9 times. Sandisk's fourth-quarter fiscal 2026 revenue rose 51% sequentially to nearly $9 billion, with non-GAAP gross margin up 6.2 percentage points to 84.6%, and long-term customer contracts worth at least $93.9 billion. Key risks include a sharp drop in NAND prices and weaker profitability that could compress the valuation multiple.
Binance users see first outflows in a week when QQQ fell, selling memory stocks and rotating into crypto-related names
According to a weekly flow analysis of equity-linked products published by Binance Research on the 20th, the platform recorded net outflows of 42 million dollars during the period from August 13 to 19, marking a third consecutive week of outflows. The Nasdaq 100 tracking ETF QQQ fell 1.1 percent over the period, but over the past 11 weeks, weeks in which QQQ declined had seen average inflows of about 165 million dollars. This time, however, funds flowed out in a week when QQQ fell for the first time, deviating from the previous trend. The technology sector led the outflows, with net outflows of 62.3 million dollars, more than triple the previous week's 18.7 million dollars and the largest in the past 12 weeks. Selling was particularly notable in memory-related names, with Micron, SanDisk, and memory-related ETFs ranking among the top by total trading value. Meanwhile, buying was concentrated mainly in crypto-related stocks that had been declining, with Strategy seeing the largest single-stock inflow at 7.9 million dollars, Coinbase receiving 2 million dollars, and the iShares Bitcoin ETF taking in 2.4 million dollars.
SK Hynix Rises 6% on $29B Buyback, SanDisk Gains 5%, Micron Climbs 3% as Memory Names Rebound
SK Hynix shares climbed 6% to $164.70 after the Korean memory giant approved the largest treasury share cancellation in South Korean history, a 40 trillion won, or about $28.6 billion, repurchase and cancellation plan covering roughly 24.07 million shares, or 3.3% of total shares outstanding. The move lifted memory peers, with SanDisk up 5% to $1,703 and Micron Technology up 3% to $967.93, while the Roundhill Memory ETF rose 4% to $57.26. SK Hynix also revised its 2025 to 2027 shareholder return commitment upward from a ceiling of 50% of cumulative free cash flow to a floor above that level, with fixed and special dividends under consideration and details due alongside third-quarter earnings likely in late October. The company cited a net cash position of approximately 69 trillion won, or about $49.36 billion, at the end of the second quarter, and last week approved 54 trillion won of investment to build two new fabrication plants in South Korea. Micron's buyback remains capped by CHIPS Act terms until December, while investor Cathie Wood has said she is steering clear of memory stocks, arguing memory is becoming increasingly expensive and will push engineers toward AI systems that need less of it.
Sandisk Unveils New Flash Memory as AI Valuation Story Gets Tested
Sandisk has unveiled a new 9th generation 2Tb QLC 3D flash memory with Kioxia, aimed at AI driven storage demand in cloud and data intensive workloads. The announcement comes as the stock has surged, with an 8.88% one day return, a 44.34% seven day return, and a year to date gain of more than 5x, driven by its AI focused product roadmap, strong recent results, and sizeable buyback plans. The most followed narrative places fair value at $1,772.91, while Sandisk last closed at $1,786.85, suggesting the stock is 80% overvalued according to that narrative. Analysts have a consensus price target of $1,772.91, with the most bullish at $3,250.00 and the most bearish at $1,000.00. The narrative leans heavily on rapid revenue compounding, sharply higher margins, and a future earnings multiple that assumes a very specific AI memory cycle, but risks include easing NAND supply or AI demand falling short.
Sandisk Secures $93.9 Billion in Minimum Contracted Revenue
Sandisk has secured $93.9 billion in minimum contracted revenue from eight datacenter and edge customers, backed by $16.5 billion in financial guarantees. The agreements have a weighted-average length exceeding four years and include pricing floors and ceilings, with Sandisk expecting actual pricing to exceed contractual minimums. Datacenter revenue surged 437% year over year in fiscal Q4, while total revenue reached $8.97 billion, up 51% sequentially and 372% from the year-ago quarter, with non-GAAP gross margin expanding to 84.6%. Management targets mid- to high-teens revenue growth from fiscal 2028 through 2030 at around 80% gross margins, and the company has $15.5 billion remaining in share repurchase authorization after generating $5.04 billion in adjusted free cash flow in fiscal Q4.
Sandisk Forecasts Double-Digit Growth Through 2030 After 3,400% Surge
Sandisk, the top performer in the S&P 500 this year with gains exceeding 600%, has issued a long-term forecast calling for mid-to-high teens revenue growth into 2030 and adjusted gross margins of about 80%. The memory and storage company, which has soared over 3,400% in the past 12 months on AI-fueled demand, recently held its Investor Day event where it shared the outlook. For the current quarter, Sandisk projects revenue between $10.3 billion and $10.8 billion, a year-over-year increase of 357% from the same period a year earlier, when its growth rate was 23%. The stock finished last week at around $1,600, down more than 30% from its June highs, but has been rising sharply in recent days following the guidance.
Micron and Western Digital Shares Soar on US Opposition to Apple Buying Chinese Memory
Micron and Western Digital shares jumped after Commerce Secretary Howard Lutnick told The Wall Street Journal the Trump administration opposes Apple buying Chinese memory chips. Lutnick said Washington is "not in favor" of Apple using Chinese memory and that he had conveyed that "plainly," which would keep more of the shortage with Micron, Samsung, and SK hynix. The news followed Sandisk's Analyst/Investor Day updates, where the company projected mid-to-high-teens revenue growth, non-GAAP gross margins of about 80%, and non-GAAP operating margins of about 75% from fiscal 2028 through 2030, and said New Business Model agreements with eight customers cover about half of its bits in fiscal 2027 and about two-thirds in fiscal 2028. Micron jumped 5.8% and Western Digital jumped 5.4%.
Sandisk shares surged as much as 10.6% on Monday, extending gains after the company's investor day last Thursday. The company announced a backlog of $93.9 billion in total contract value and plans to return 100% of excess cash to shareholders. JPMorgan analyst Harlan Sur reinitiated coverage with an overweight rating and a $2,250 price target, citing Sandisk's position in NAND flash memory demand driven by AI. The stock trades at less than 25 times earnings despite triple-digit revenue and profit growth.
Bank of America sees Micron Technology generating more than $230 in earnings per share by fiscal 2030, more than double what Wall Street currently expects at peak. Analyst Vivek Arya reiterated a Buy rating and $1,550 price target on Micron while adding the stock to BofA's US 1 List, representing over 50% upside from the current level of $1014. The note draws on SanDisk's recent investor day commitments of 15% annual sales growth and greater than 80% gross margins through FY30, applying those assumptions to Micron to arrive at a FY30 EPS range of $200 to $250, implying a 30%-plus EPS compound annual growth rate from FY26 through FY30. BofA argues that if Micron's earnings volatility proves structurally lower, the stock deserves to re-rate from its historical 10x P/E multiple toward 12x to 15x, and models more than $80 billion in trailing-twelve-month free cash flow beginning around December 9, 2026, with more than $640 billion in cumulative FCF through FY30. Arya dismisses concerns about lower-memory configurations in Rubin Ultra GPU designs as overstated, citing HBM4e and HBM5 roadmaps targeting 500GB to 1TB configurations and industry migration to 12-Hi and 16-Hi stacks, while identifying capital deployment as the primary risk to the thesis.
SK Hynix Stock Jumps on Trump Opposition to Apple China Chip Plan
SK Hynix shares rose 4% through 10 a.m. ET Monday after Commerce Secretary Howard Lutnick said the Trump administration is not in favor of Apple buying memory chips from China's Yangtze Memory Technologies and CXMT. White House spokesman Kush Desai said reshoring semiconductor manufacturing to America is a top priority, which could benefit Micron and Sandisk, but the policy may also help South Korea's SK Hynix as a friendly alternative to Chinese suppliers. SK Hynix trades at 8.1 times trailing earnings, below Sandisk at 21.4 times and Micron at 21.7 times, with analysts projecting 86% annual earnings growth over five years.
Sandisk's Long-Term Guidance Signals Strong Memory Demand for Micron
Sandisk's management gave Micron Technology investors encouraging news by unveiling long-term revenue growth guidance in the mid-to-high teens between fiscal 2028 and 2030 at its Investor Day event. This forecast, while a slowdown from the 175% growth in its most recent fiscal year, suggests the memory shortage may persist and demand remains strong across the sector. Micron, which sells high-bandwidth memory and DRAM, has seen its stock rise over 700% in the past year and reached a market cap of $1.1 trillion. Investors interpreted Sandisk's outlook as a positive signal for Micron's long-term prospects, though some caution remains due to Micron's high valuation.
AI infrastructure stocks edge higher after Anthropic's Q2 revenue surge
AI infrastructure stocks edged higher in pre-market trading on Monday after Anthropic's second quarter revenue surged to $11.5B, nearly two-and-a-half times the first quarter's $4.7B figure. The Dario Amodei-led firm also recorded positive adjusted operating income for the first time. Memory and storage companies rose, with Micron Technology up 3%, Seagate Technology up 2.5%, Sandisk up 3.5%, Western Digital up 2.6%, and Nasdaq newcomer SK Hynix up 3%. Networking stocks were mostly higher, with Lumentum Holdings, Ciena, and Corning all up 1.5%, while Applied Optoelectronics and Coherent both increased 1.7%. Chipmakers were modestly higher, with Intel and Nvidia both up about 0.7%, after Nvidia slashed its financial backing for a massive OpenAI data center project in Ohio from $250B to less than $120B. The largest hyperscalers were mixed, with Oracle down 1.1%, Microsoft down 0.7%, Google up 0.2%, and Amazon up 1.4%.
Sandisk Bulls Say AI and Long-Term Contracts Are Ending Memory Boom-Bust Cycles
Sandisk Corporation stock gained almost 6% during Monday's premarket session as semiconductor analysts argued that multi-year customer contracts and AI-driven storage demand could make the traditionally cyclical memory business more predictable and profitable. CEO David Goeckeler said the company now has detailed visibility into customer purchases for the next four years, including month-by-month demand forecasts, and expects the transition to create a very different business by 2027, 2028 and 2029. Cantor Fitzgerald analyst CJ Muse told CNBC that Sandisk could generate about $150 billion in free cash flow over the next four years, roughly two-thirds of its current market capitalization, and highlighted management's plan to return 100% of excess cash to shareholders primarily through buybacks. Melius Research's Ben Reitzes said AI has changed the traditional memory playbook, with major customers increasingly wanting multi-year contracts because insufficient memory could constrain their AI infrastructure, and he estimates Sandisk could repurchase roughly $100 billion of stock over the next three years. Sandisk carries a Buy consensus rating with an average price forecast of $2,213.71, and on Friday RBC Capital raised its price forecast to $1,600 while Wells Fargo raised its forecast to $1,550.
Alibaba shares rose 1.5% premarket after Reuters reported the company is set to sell its Lingxi Games business to private equity firm Trustar Capital for more than $2 billion. Memory chipmakers gained after U.S. Commerce Secretary Howard Lutnick told the Wall Street Journal the Trump administration opposes Apple buying Chinese memory chips, with Sandisk up nearly 5% and Western Digital and Micron Technology up more than 3%. Intel added about 1.5% after CEO Lip-Bu Tan purchased more than 105,000 shares at $95 each, according to an SEC filing. SoFi Technologies rose 2% after Piper Sandler initiated coverage with an overweight rating, and Okta gained 1% after Wells Fargo upgraded the stock to overweight from equal-weight.
Elon Musk Says Memory Is the Rate Limiter of the Agentic AI Era
Elon Musk said on X that memory, not compute, is the rate limiter of the agentic AI era, a comment seen as bullish for memory and storage stocks including Micron, Sandisk, and SK Hynix. Musk replied "Few realize this" to a technology executive's post that memory is the rate limiter of the agentic era. The agentic AI shift is driving demand for specialized high-capacity, high-bandwidth DRAM and NAND flash, with Micron noting that high-bandwidth memory requires at least three times as much capital equipment per bit to produce as traditional server DRAM. Goldman Sachs estimates agentic AI will consume roughly 120 quadrillion tokens per month by 2030, 24 times the token usage of early 2026. The stocks remain 15% to 30% below their June highs after a pullback in July.
SanDisk Spin-Off Outlines $93.9 Billion Backlog and 80% Margin Target
SanDisk, the flash-memory business spun off from Western Digital, outlined a US$93.9 billion customer backlog at its recent Investor Day and is targeting 80% margins through 2030, with management linking the outlook to demand for AI-related storage solutions. The update gives Western Digital investors fresh context on how the split is reshaping exposure to higher-margin storage opportunities, as Western Digital remains focused on hard disk drive storage across the US, Asia, Europe, the Middle East and Africa. SanDisk's backlog and margin targets highlight how the separation concentrates much of the flash and AI-oriented storage exposure in the spin-off entity rather than the parent, leaving Western Digital more concentrated in capacity-driven cloud and AI archives. The core Western Digital narrative still leans on deep hyperscaler partnerships, ePMR and UltraSMR adoption, and the future HAMR roadmap, not on NAND margins, and SanDisk's outlook reinforces one of the key narrative risks: Western Digital's dependence on a narrower set of technologies and a concentrated group of cloud customers for long-term growth. Investors can track whether management points to multi-year hyperscaler contracts and healthy uptake of UltraSMR and upcoming HAMR products at events such as the Open Storage Summit on 11 August 2026 as confirmation that the HDD-focused model is gaining traction.
SanDisk and Micron Rally After Margin Targets Defy Bearish Social Media
SanDisk and Micron rallied after SanDisk released gross margin targets for 2028 to 2030 that sent the entire memory sector soaring. SanDisk rose 35.38% for the week ending August 14, closing at $1,641.11, while Micron rose 10.72% to $971.66. SanDisk's new financial model forecasts non-GAAP gross margins at 80% in the 2028 to 2030 period, backed by $16.5 billion in long-term customer commitments, while Micron has $22 billion in strategic customer agreements. The rally followed a weekend of bearish social media sentiment, with Reddit chatter on Micron briefly flipping bearish and SanDisk sentiment sagging into neutral range. Analysts on The AI Investor Podcast argued that memory margins could compress without crashing the market, and recommended pairing memory exposure with optical plays like Semtech, whose data center revenue rose 39% year over year.
Intel prices $20B stock offering; Super Micro, Workday surge
Intel priced an upsized $20 billion public stock offering this week, selling over 210 million shares at $95 each and expecting net proceeds of about $19.7 billion to fund AI-related growth opportunities. Super Micro Computer closed 19% higher on Wednesday after issuing fiscal first-quarter guidance well above Wall Street forecasts, while Lumentum rose 14% on strong fiscal fourth-quarter results and outlook. Workday jumped nearly 18% on Thursday after Reuters reported private equity firm Silver Lake is in talks to buy the software company, with Needham analysts estimating a potential takeover price of $240 to $250 per share. NVIDIA confirmed it is working with a consortium of lenders including Apollo Global Management, Blackstone, BlackRock, Brookfield, Goldman Sachs, and KKR to raise $500 billion for AI infrastructure, signing a memorandum of understanding to establish first-of-their-kind compute financing platforms at global scale. AMD filed a mixed shelf debt offering that could raise up to $5 billion in four tranches, and Argus upgraded Sandisk to Buy from Hold with a $1,600 price target.
Morgan Stanley sees storage strengthening, PC demand deteriorating
Morgan Stanley's latest value-added reseller checks show enterprise infrastructure spending remains strong but is diverging across hardware categories, with storage strengthening, servers staying well above historical levels, and PCs eroding. Analyst Erik Woodring said third-quarter enterprise hardware spending is tracking in line to slightly above expectations set 30 days ago, helped by large enterprise demand, healthy mid-market spending, and incremental improvement in the public sector. Storage demand is running ahead of prior expectations for the September quarter, with year-over-year growth expected to accelerate from the second quarter, and the reseller believes the momentum of recent quarters remains in the very early stages, potentially supporting a multi-year cycle. Server demand remains exceptionally strong, though the bank flagged fewer and smaller deals and longer sales cycles than a month ago, with the moderation most pronounced in financial services, but it does not read this as material deterioration. PCs saw the sharpest deterioration, with the reseller now expecting third-quarter growth near 6%, down from roughly 10% previously.
Micron Seen as Higher-Conviction Memory Play Than Sandisk Into Late September
Micron Technology is viewed as the higher-conviction memory stock through late September compared with Sandisk, based on its HBM-driven AI demand and contracted revenue floor. Micron posted fiscal Q3 revenue of $41.5 billion with gross margin of 84.9% and operating margin of 81.2%, while data center revenue exceeded $25 billion and HBM4 shipments topped $1 billion. Sandisk's Q4 revenue reached $8,965 million with data center revenue up 103% sequentially, and its shares jumped 21.42% over the past week after the August 5, 2026 report. Micron has about $100 billion in contracted revenue across 16 Strategic Customer Agreements, versus Sandisk's $93.9 billion minimum across 10 non-binding memorandums, and Micron guides fiscal Q4 revenue of $50 billion plus or minus $1 billion with EPS of $31 plus or minus $1. Micron's late-September report is backed by an eight-quarter beat streak and a 6x forward P/E, while Polymarket traders see a 64.5% probability that Micron hits $1,020 during August.
Sandisk Adjusts Product Portfolio to Address Gen AI Workflow Bottlenecks
Sandisk has announced a restructuring of its flash memory solution portfolio in Thailand to support increasingly complex and large-scale data processing at every level, from internal computing devices to portable storage systems. The company introduced the SANDISK Optimus architecture based on the NVMe protocol, divided into the Optimus GX PRO Series for AI model developers, 8K and RAW video editing, and workstations, and the Optimus GX Series focused on DirectStorage responsiveness for modern gaming. On the portable side, the solutions offer read speeds of up to 2,000 megabytes per second and an ultra-compact form factor for seamless storage expansion via USB-C ports. These advances have been recognized with a Red Dot Design Award 2026, reflecting a transition from data storage media to data infrastructure for individuals and small organizations.
PBOC to conduct 1 trillion yuan reverse repo; CXMT market value surpasses Tencent
The People's Bank of China announced it will conduct a 1 trillion yuan outright reverse repurchase operation on August 14, with a term of six months. Meanwhile, as of the Hong Kong stock market close on August 13, CXMT's market value reached 3.54 trillion yuan, surpassing Tencent Holdings' 3.44 trillion yuan. US memory chip stocks surged, with SanDisk up more than 13 percent, and Western Digital and SK Hynix up more than 7 percent. DeepSeek announced API price adjustments using peak and off-peak pricing, with off-peak prices set at half the peak rate, effective August 17. SMIC reported second-quarter revenue of 3.006 billion US dollars, up 36.1 percent year on year, and net profit attributable to shareholders of 479 million US dollars, up 261.7 percent year on year.
Semiconductor equipment stocks rose Thursday after SanDisk issued bullish multi-year financial targets at its 2026 Investor Day. SanDisk guided for revenue growth in the mid-to-high teens through fiscal 2030, non-GAAP gross margins of approximately 80%, operating margins around 75%, and adjusted free cash flow margin near 50%, with plans to return 100% of excess cash to shareholders. The company has signed New Business Model agreements with eight customers covering about 50% of bits in fiscal 2027 and roughly two-thirds in fiscal 2028, backed by committed volumes and minimum financial guarantees. Lam Research climbed about 4% as the most direct equipment beneficiary, Applied Materials rose about 1.5% ahead of its Q3 earnings report after the close, and Camtek was roughly flat after last week's sharp run. SanDisk shares jumped about 14% intraday.
Bernstein SocGen Group analyst Mark C. Newman raised his price target on Sandisk by 25% to $1,250 per share, sending the stock up 6.3% through 11:55 a.m. ET Thursday. Newman sees a blue-sky scenario of $3,000 if NAND memory chip prices keep soaring, noting March NAND prices rose more than expected. He projects Sandisk could earn $224 per share in fiscal 2027, while his base case values the stock at roughly $1,250 using an 11-times multiple on average earnings of $114 per share over 2026 to 2029. Sandisk's fiscal Q3 2026 earnings report is due April 30.
SK Hynix and SanDisk Surge 8% as Memory Shortage Deepens
SK Hynix and SanDisk each surged 8% Wednesday after Temasek announced direct investments and Micron's Chief Business Officer warned 2027 supply will be even tighter. Micron jumped 6% and the Roundhill Memory ETF rose 8%, yet all trade below 21 times earnings despite revenue surging over 345% year over year. Micron's Sumit Sadana told investors at KeyBanc's tech conference that 2027 will likely be even tighter than 2026, with structural supply constraints extending beyond next year as AI demand outpaces new capacity. Temasek reportedly views the AI-semiconductor segment as undervalued and is planning direct investments in Samsung Electronics and SK Hynix. Intel CEO Lip-Bu Tan also floated memory-CPU stacking and new memory architecture, noting memory makers are reportedly sold out for the next two years.
Sandisk unveiled its newest ninth-generation high-performance 2Tb QLC 3D flash memory technology designed to support growing storage demands of AI-driven infrastructure. The company developed the technology in cooperation with Japan's Kioxia Corporation, and the companies say the new chips read and write data 33% faster than the previous eighth-generation chips while being more power-efficient. Sandisk stock rose 7.2% through 9:50 a.m. ET Wednesday in response. The chips are designed to favor agent-based and physical AI applications, such as robots and self-driving vehicles.
AI infrastructure stocks surge after strong earnings from CoreWeave, Supermicro
AI infrastructure stocks surged on Wednesday after blowout results from AI server hardware maker Supermicro and neocloud providers CoreWeave and Nebius Group. Nebius stock surged after quarterly revenue topped analyst expectations, while Supermicro reported fourth quarter results that beat analyst estimates on earnings and issued an upbeat forecast that sent shares higher by more than 6%. AI hosting peers Applied Digital and IREN also moved higher after CoreWeave posted quarterly results highlighting accelerating demand and a surging backlog. Lumentum shares gained after the maker of optical and photonic products for data centers posted fiscal fourth quarter revenue that more than doubled to $1.01 billion, and peers Coherent and Ciena both jumped. The memory and storage complex also rose, with the Roundhill Memory ETF up 4%, SanDisk up 4%, and Micron and SK Hynix each up 4%.
Sandisk Authorizes $15.5 Billion Stock Buyback After 429% Surge This Year
Sandisk has authorized a $15.5 billion share repurchase program, signaling management's belief that the stock remains undervalued despite a 429% surge so far in 2026. The board approved an additional $14 billion buyback after deploying roughly $4.5 billion in the fiscal fourth quarter, leaving $1.5 billion under a prior $6 billion authorization. The company's market cap is around $186 billion, and its data center revenue grew over 400% annually, with fiscal 2026 revenue rising 175% to $20.3 billion. Sandisk has secured eight multiyear supply contracts with a minimum revenue floor of $93.9 billion, supported by $16.5 billion in prepayments, and analysts estimate fiscal 2027 earnings per share of $212, giving a forward price-to-earnings ratio of about 6.