Sandisk's Rewriting Laws Of Gravity With Surging NAND Prices

Uttam Dey5.59K FollowersFollow5ShareSavePlay(9min)CommentsSummarySandisk is positioned to benefit from surging NAND wafer prices, driven by AI data center demand and industry-wide capacity constraints.With no capacity being added this fiscal year, Sandisk can continue to benefit from surging NAND prices, which jumped 6x, buoyed by strong AI inference demand.Sandisk's gross margins surged 2000 bps to 51% in Q2, with further expansion of 400-600 bps likely as capacity remains tight and prices rise.I reiterate a bullish rating on SNDK, with potential to reclaim all-time highs if NAND price momentum and margin expansion persist. J Studios/DigitalVision via Getty Images Investment Thesis Recent industry data shows that spot prices for NAND wafers have surged again, reflecting strongly on the dual nature of tailwinds the storage suppliers like SanDisk (NASDAQ:SNDK) continue to benefit from. The surge in NAND prices is fasterThis article was written byUttam Dey5.59K FollowersFollowUttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.