Track market-moving stories before they get noisy

Sandisk (SNDK -1.82%) makes NAND memory chips, which are primarily used for long-term data storage in devices like solid-state drives. That may sound like a pretty boring business with not a lot of innovation going on in it -- and you'd be right.

That's why Sandisk and its peers are normally pretty boring stocks, but all of that changed in 2026. Demand for storage skyrocketed alongside data center build-outs, consuming all available production capacity. All of a sudden, Sandisk's products were hot commodities, and prices skyrocketed, which translated into incredible stock growth for Sandisk.

It's up nearly 500% this year -- second-best in the S&P 500. This also allowed Sandisk to form a new, sustainable business model. I think the transition to this model will help Sandisk tremendously over the long term and eliminate some of the cyclicality typically associated with companies in the memory chip industry.

That completely flips the narrative behind investing in Sandisk's stock, making this an ideal time to buy it.

Image source: The Motley Fool.

Sandisk isn't as dependent on market conditions
In normal times with ample supply, there isn't a lot that separates Sandisk's storage devices from its competition, so only one thing matters: price. The lowest price wins here, which isn't the greatest for Sandisk as a business.

However, with sky-high demand and no supply, Sandisk is taking this opportunity to reformulate its business model. The aptly named "New Business Model (NBM)" is basically a contractual agreement with some clients that sets a floor and ceiling for memory prices but has committed volumes. This is a key development, because it makes Sandisk's future more predictable.

Consistent cash flows allow the management team to allocate capital where they see fit, rather than worrying about what the business will look like a few years down the road. That's why subscription business models are king, as they are predictable. With Sandisk moving toward contract-based work, this will help smooth out the demand curve and reduce cyclical drawdowns that have plagued investors in this industry.

However, the stock is still priced like it's due for a cyclical drawdown.

SNDK PE Ratio (Forward) data by YCharts

Remember: 6.3 times forward earnings is a dirt cheap price tag to pay for any stock. Sandisk's business model shifting more toward consistent contract work, so this should result in an increased stock premium, as it won't be as dependent on price swings in the market.

SNDK Sandisk$1,238.03-$22.90 (-1.82%)

NASDAQ · As of 4:00 PM ET 10/23/26

I think the opportunity is compelling enough to warrant buying shares now, and investors should act before the market catches up to this transformation.

Sandisk is a Buy with a 12-month price target of $1,830, reflecting 32% upside and minimal direct DRAM exposure. The recent CXMT DRAM news triggered an 18% drop, but SNDK's contracted flash business and Japanese supply chain insulate it from DRAM-specific risks. NBM agreements cover $59.8B in future revenue, with price floors and ceilings, supporting earnings even if flash prices decline sharply.

Micron Technology (MU -6.26%) and Sandisk (SNDK -8.51%) are members of an elite club. Only four stocks in the S&P 500 (^GSPC -1.21%) have tripled or more so far in 2026. Micron and Sandisk make up half that group.

Sandisk has been the bigger winner by far this year. But that performance is water under the bridge. Which is the better memory stock to buy now?

Image source: Micron Technology.

Two different kinds of memory stocks Micron and Sandisk are similar in some respects. However, they're two very different kinds of memory stocks.

The most important difference between the two companies is the types of memory they focus on. Micron makes high-bandwidth memory (HBM), dynamic random access memory (DRAM), and NAND memory. Sandisk specializes in NAND flash memory.

HBM is Micron's crown jewel these days. In the company's fiscal 2026 fourth quarter, HBM revenue growth exceeded total revenue growth. Management said that it has completed sales agreements "for the vast majority" of its 2027 calendar-year HBM supply at significantly higher prices than it obtained in 2026.

Sandisk's NAND flash focus has worked to its benefit, though. Surging NAND prices have allowed the company to capture the full upside without any dilution from memory chips that aren't experiencing as strong demand.

But artificial intelligence (AI) serves as a massive tailwind for both companies. Memory is critical to AI applications. In particular, the shift to inference and the rising adoption of agentic AI are driving significant demand for multiple types of memory.

MU Micron Technology$856.49-$57.18 (-6.26%)

NASDAQ · As of 4:00 PM ET 10/22/26

By the numbers: how Micron and Sandisk compare Micron is much bigger than Sandisk. Its market cap tops $1 trillion, making Micron one of the world's top 10 largest technology companies. Meanwhile, Sandisk's market cap is around $200 billion.

Unsurprisingly, Micron also makes more money than Sandisk. In its latest quarter, Micron reported revenue of $54.2 billion and earnings of $37.7 billion. Sandisk's revenue in its latest quarter was $8.97 billion, with earnings of $6.9 billion.

Both companies boast impressive growth. In its fiscal 2026 Q4, Sandisk's revenue soared 372% year over year and 51% quarter over quarter. Micron's fiscal Q4 revenue jumped 379% year over year and roughly 31% quarter over quarter.

Micron and Sandisk are cyclical stocks, which is reflected in their valuations. Micron's shares trade at only seven times forward earnings, while Sandisk's forward earnings multiple is 8x.

SNDK Sandisk$1,260.93-$117.29 (-8.51%)

NASDAQ · As of 4:00 PM ET 10/22/26

Wall Street likes both memory stocks, although the bullish views seem somewhat stronger for Micron. Of the 29 analysts who rated Micron over the past three months, 27 (93%) recommended buying the stock. The consensus 12-month price target for Micron reflects a potential upside of around 74%. Of the 17 analysts who rated Sandisk over the past three months, 15 (88%) recommended buying the stock. The average price target for Sandisk is roughly 60% above the current share price.

The verdict Both Micron and Sandisk could (and probably will) continue to deliver exceptional returns over the next few years. But I think that Micron is the better memory stock overall.

While Sandisk's pure-play NAND focus is its greatest strength, it's also the company's most significant risk. If NAND prices fall, Sandisk's revenue and profits will sink. Micron faces risks, too, but its breadth across multiple types of memory should provide some cushion.

I also think that Micron could have a bigger long-term opportunity. In particular, I'm excited about the company's prospects in the humanoid robotics market. Humanoid robots require enormous low-power memory. Micron is investing to meet expected demand and believes it will enjoy "a sustained, substantial multi-decade memory demand cycle" beginning later this decade.

My verdict aligns with Wall Street's take on these two stocks. Micron is the better pick right now.

SanDisk Corp. (NASDAQ:SNDK) shares are sliding Thursday along with other memory and storage chip stocks, as investors worry that climbing AI infrastructure costs will curb future spending and chip demand.

SanDisk shares are retreating from recent levels. What’s pressuring SNDK stock? SanDisk Stock Falls On AI Spending ConcernsMemory and storage chip stocks are losing ground, and SanDisk is one of them. Investors fear that AI infrastructure is getting so costly that customers could slow their spending, which would cut demand for chips.

Nvidia CEO Jensen Huang added to the unease Thursday by saying capital is scarce for funding AI expansion. His remarks deepen doubts that AI investment can keep growing.

Huang described a mismatch: neocloud demand is extraordinary, but money to expand is short. He spoke with CNBC at Nvidia’s GTC conference in Berlin on Thursday.

Working capital is the missing piece, Huang said, and the many AI sectors competing for funds have created a “scarcity of capital.” Requests for money far outstrip what exists, he said, but he expects the gap to close.

Credit Investors Warn On AI Financing CostsCredit markets show the same worry, according to Bloomberg. Financing AI infrastructure is getting pricier, investors say, and a surge of new debt is on the way.

Grant Nachman, founder and chief investment officer of Shorecliff Asset Management, said today’s market could make large unsecured loans to neocloud providers unaffordable or hard to land.

MetLife Investment Management’s John Yovanovic, co-head of leveraged finance, points to the debt supply expected over the next 18 months as the bigger problem. Companies that keep accepting rising borrowing costs risk hurting existing bondholders, he said, and buyers may wait for yields to climb before stepping in.

SNDK Shares Are TumblingSNDK Price Action: SanDisk shares were down 9.30% at $1250.03 at the time of publication on Thursday, according to Benzinga Pro.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNDK either through stock ownership, options, or other derivatives. 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.

Sandisk (SNDK +0.94%) has been one of the hottest stocks of the year. Its memory products are in high demand for artificial intelligence (AI) data centers, and thanks to a shortage of those products, it's achieving extraordinary revenue and profit growth. As a result, the stock is up 478% so far in 2026.

The memory giant will report results for its fiscal 2027 first quarter on Oct. 29. Here's what history suggests might happen before it does.

Low supply for AI As the artificial intelligence (AI) trend has progressed, the focus has shifted repeatedly. First, much of the interest was on the foundational models; then came demand for data centers and the AI accelerators and GPUs that provided compute for those models. There has been a concurrent boost to the energy sector as the tech players had to answer the question of where the electricity to power all of those new data centers was going to come from.

Now, getting enough memory for those data centers has become one of the most critical parts of the infrastructure build-out process.

Image source: Sandisk.

Sandisk makes many kinds of memory products, from the memory cards in your smartphone to the dynamic random access memory (DRAM) in your laptop, but the recent frenzy is for its NAND flash memory, which can keep storing data even when it's not powered on, and is vital for AI training. Sandisk is one of the few makers of NAND, and data centers have become a huge part of Sandisk's business.

Scarcity is what's driving this rally -- demand from data centers far exceeds the supply of NAND that Sandisk and its peers can manufacture, so they've all been able to boost prices sharply, and all are experiencing rapid growth.

In Sandisk's fiscal 2026 fourth quarter (which ended July 3), revenue increased 372% year over year, and data center revenue doubled just from its fiscal Q3. 

Is this the end of the cycle? Despite its massive growth and soaring profits -- it booked $43.97 in earnings per share in its fiscal fourth quarter -- Sandisk stock is rather cheap, trading at a P/E ratio of under 19. That lack of a premium is tied to investors' worries that the end of this up phase of the memory cycle is inevitable.

Historically, memory companies have always gone through booms and busts based on the supply-and-demand cycle. When supplies are tight, prices rise, and manufacturers build new foundries to expand capacity. Then supply catches up to and exceeds demand (which often declines cyclically as well), and prices tumble again.

Right now, the AI build-out requires huge quantities of memory products, but data center construction and processor purchases are likely to taper off at some point. The question is when.

SNDK Sandisk$1,378.22+$12.84 (+0.94%)

NASDAQ · As of 4:00 PM ET 10/21/26

Anticipating this, Sandisk this year introduced its new business model (NBM) agreements, which lock in long-term sales deals with large customers, guaranteeing some price floors and purchase volumes for multiple years. It had eight NMBs as of the end of the fiscal fourth quarter. Management notes that it provides necessary infrastructure components to the biggest and most important tech companies, and those businesses are planning -- and purchasing -- several years in advance. It's also focusing on its highest-value products and markets, which management believes will lead to "more durable earnings power."

What might happen before Oct. 29 Western Digital spun off Sandisk in February 2025, and since its return to the market as an independent company, the stock has climbed prior to all previous earnings reports except the most recent one. By then, Sandisk stock had soared to an expensive level. It has started to rise again, but it's still not back to its previous high. So while history suggests it's going to climb again over the next few days, the trend has changed.

SNDK data by YCharts

Since the stock price is much lower today, there's room for it to rise in the coming days, and to keep heading higher after earnings if it meets or surpasses expectations. Management is guiding for $10.5 billion in revenue at the midpoint, a 357% increase over last year, and $45 in EPS. Wall Street is expecting a 363% increase and $46.27 in EPS. The market will also be looking for new business deals and guidance for continued high growth.

SanDisk Corp. (NASDAQ:SNDK) shares are fluctuating Wednesday even as Mizuho urged investors to buy the weakness. Here's what you should know.

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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.

Memory chip stocks are giving back ground as a selloff in Seoul revives worries about how long the AI spending boom can last. SK Hynix (NASDAQ:SKHY) stock is trading lower this morning, down 4% at $137.03, leading memory names lower.…

Memory chip stocks are giving back ground as a selloff in Seoul revives worries about how long the AI spending boom can last. SK Hynix (NASDAQ:SKHY) stock is trading lower this morning, down 4% at $137.03, leading memory names lower.

At the same time, SanDisk (NASDAQ:SNDK | SNDK Price Prediction) shares are down 3% to $1,336.86. Moreover, Micron Technology (NASDAQ:MU) stock is down 2% to $886.64, the smallest drop among the three.

Each of SK Hynix, SanDisk and Micron has ridden a powerful pricing cycle tied to AI data center buildouts. That run has left memory stocks sensitive to any sign that hyperscaler capital spending may be topping out, and the suppliers downstream of the chipmakers carry much the same exposure (we analyzed seven of them, from power to cooling, in a free report you can grab here).

Seoul Selloff Revives AI Spending Fears
South Korea’s Kospi led Asian markets lower overnight as concerns about the sustainability of AI spending weighed on chip stocks across the region. Seoul-listed SK Hynix shares fell sharply in that retreat, and the pressure carried over into U.S. trading.

That slide reverses a rebound in U.S.-listed SK Hynix shares, which rallied on Monday to end a long losing streak. Micron shares and other chip stocks had also sprung back after a bruising selloff in that session, so the latest drop hands back some of the relief.

Memory Fund Falls Harder Than Tech Benchmark
Pricing for the Roundhill Memory ETF (CBOE:DRAM) shows the weakness is concentrated in memory. The fund is down 3% to $46.75, with SK Hynix and Micron among its largest holdings. By comparison, the Invesco QQQ Trust (NASDAQ:QQQ) is down 0.5% to $715.16.

That gap marks the move as a memory-group selloff led from Seoul. Micron shares also rank among the Invesco QQQ Trust’s largest positions, which links the memory slide directly to the tech benchmark.

SK Hynix and Micron both make memory chips, including the high-bandwidth memory stacked beside AI processors in servers. SanDisk sells flash storage chips and drives built to hold data. Separately, a union at Micron’s Taoyuan operation in Taiwan plans a strike later this week over employee bonuses and profit sharing.

Weighing the AI Memory Story
SK Hynix’s bull case rests on its role as a critical supplier of high-bandwidth memory, which is essential to AI accelerators and high-performance computing systems. At last week’s Open Compute Project Global Summit, SK Hynix demonstrated its Memory Centric AI Rack System and detailed a memory module that lets multiple servers share a memory pool.

Cyclicality grounds the bear case. One observer posting on X as Financelot argued that “P/E is totally irrelevant for memory stocks” and that “Every single memory cycle has rolled over when gross margins peak.” That concern applies to SK Hynix, SanDisk and Micron shares alike, since all of them sell into the same AI expansion.

Retail sentiment remains firm. Reddit discussion of Micron stayed bullish in the latest period, though activity remained low. Micron’s most-upvoted recent Reddit thread carried a skeptical title: “if rich people appear on television suggesting you should buy stock, run. quickly.”

SK Hynix reports its results in Korean won. That reporting currency exposes holders of the U.S.-listed shares to exchange-rate swings.

SK Hynix Report Looms as the Next Test
Upcoming results from SK Hynix could show whether AI memory demand holds up against the spending worries. Hence, this may be a good time for watching and waiting instead of trading SKHY stock.

The conclusion is simple for prudent investors. Share positions in SK Hynix, SanDisk and Micron shares should remain moderate until SK Hynix’s next report arrives.

Contact [email protected] for any questions or corrections.

Shares of Sandisk (SNDK +6.05%) charged sharply higher on Monday, jumping as much as 8.3%. As of 11:24 a.m. ET, the stock was still up 7.9%.

While a rebound in technology issues certainly helped, the semiconductor specialist rallied on positive news in the high-bandwidth memory (HBM) space.

Image source: The Motley Fool.

Industry standardEarlier this year, Nvidia (NVDA +1.78%) announced the development of NVHBM, the company's custom HBM architecture. NVHBM is a custom HBM die that delivers 15% lower power consumption and 30% higher bandwidth, all on a smaller die than HBM4e. To be clear, this isn't a replacement for traditional HBM, but rather connective technology between Nvidia's NVLink and HBM chips.

A report emerged over the weekend that Nvidia has asked Samsung Electronics to adopt Taiwan Semiconductor Manufacturing's 3-nanometer chipmaking process to produce the NVHBM dies, according to a story that first appeared in the Seoul Economic Daily. This will mark the first such collaboration between TSMC and Samsung, according to the report.

SNDK Sandisk$1,377.94+$78.64 (+6.05%)

NASDAQ · As of 1:27 PM ET 10/19/26

Moreover, Nvidia has approached the industry's biggest memory producers, including Micron Technology and SK Hynix, to use this process, which would standardize it across multiple memory suppliers. This, in turn, would free up valuable real estate on the compute die, resulting in up to 30% additional compute.

Investors have been concerned that demand for artificial intelligence (AI) could falter, thereby reducing demand for the AI chips. This move by Nvidia suggests that -- despite fears to the contrary -- the adoption of AI still has room to run. This suggests that the same is true for memory chip suppliers.

Even in the face of unprecedented demand for memory chips, Sandisk stock is selling for just 19 times earnings and 6 times forward earnings. This gives investors the opportunity to pick up shares at a discount.

Danny Vena, CPA has positions in Micron Technology, Nvidia, and Sandisk. The Motley Fool has positions in and recommends Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Sandisk Corporation (SNDK - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 27.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why a Trend Reversal is Due for SNDKThe RSI reading of 29.31 for SNDK is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering SNDK in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, SNDK currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Memory chip stocks are surging as AI spending fears fade, but Goldman Sachs just warned that Micron may be the odd one out while Sandisk and SK Hynix race ahead on a technology that could reshape how AI processors store…

Memory chip makers are leading a rebound in technology stocks as fears about AI spending ease. Micron Technology (NASDAQ:MU | MU Price Prediction) stock is at $916.43, up 4% in morning trading. Chip stocks generally are springing back from last week’s bruising selloff.

Meanwhile, Sandisk (NASDAQ:SNDK) stock is up 7%. SK Hynix (NASDAQ:SKHY) stock is at $143.93, up 5%, ahead of Micron stock.

For a sector-level check, the Roundhill Memory ETF (CBOE:DRAM) is up 5%, a better showing than Micron stock. Large-cap tech is rising at a slower pace, with the Invesco QQQ Trust (NASDAQ:QQQ) up 1.62%.

AI Spending Fears Ease for Micron
Fading worries about AI spending, the force behind the recent tech selloff, are lifting Micron shares. Demand from AI data centers showed up clearly in Micron’s results for fiscal Q4 2026, when revenue reached $54.23 billion and topped expectations. Its non-GAAP earnings per share (EPS) came in at $33.42, ahead of the $31.35 consensus and marking an eighth straight quarterly beat.

On Micron’s September 30 earnings call, chief executive Sanjay Mehrotra stated that a large part of the company’s 2027 high-bandwidth memory volume is already sold out and that “the prices are much higher than 2026 prices.” He also declared, “We do not have line of sight to when supply and demand will return to balance.”

Management forecast Micron’s fiscal Q1 2027 revenue to $61.5 billion, plus or minus $1.5 billion. Storage demand is surging as well, with Micron’s data center solid-state drive revenue reaching nearly $10 billion in Q4.

Solidigm Warning Hangs Over SK Hynix
SK Hynix stock is rising even though a regulatory warning out of Seoul cuts against the company. South Korea’s Financial Supervisory Service governor Lee Chan-jin told a parliamentary audit that regulators had determined a proposed U.S. listing of SK Hynix’s Solidigm unit would breach Korean rules on overlapping listings. Shares of SK Hynix listed in Seoul closed lower in Korean trading.

Part of the SK Group conglomerate, SK Hynix stock trades on the Korea Exchange, with American Depositary Shares listed in the U.S. Currency swings matter for U.S. holders of SK Hynix stock, since the company reports its results in Korean won.

For its part, SK Hynix stated that it’s reviewing ways to strengthen Solidigm and that no decision has been made. Its lead in high-bandwidth memory for AI processors remains the company’s core franchise.

Why Micron Trails Its Memory Peers
Goldman Sachs asserted in a research note last week that Sandisk and SK Hynix lead development of High Bandwidth Flash, stacked flash memory placed beside AI processors.

In the same note, the firm rated Micron stock Neutral, viewing it as a less direct beneficiary given its focus on a different type of memory chip.

Sandisk makes flash storage for data centers and devices. That ties it directly to Goldman Sachs’s thesis.

Micron’s Outlook
As of May 11, the Roundhill Memory ETF’s top weights were Samsung Electronics at 25%, SK Hynix at 24.2% and Micron at 23.8%. A much smaller piece went to Sandisk.

For Micron, the bull case rests on management’s view that memory and storage supply will stay tight through calendar 2028, supported by Strategic Customer Agreements that add demand visibility. Its main risk is that Goldman’s view turns out right and more AI memory spending flows to Sandisk and SK Hynix. Investors’ share positions should stay moderate until that plays out.

Contact [email protected] for any questions or corrections.

Counterpoint Mutual Funds LLC purchased a new stake in Sandisk Corporation (NASDAQ:SNDK – Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 5,897 shares of the data storage provider’s stock, valued at approximately $10,260,000. Sandisk accounts for approximately 0.9% of Counterpoint Mutual Funds LLC’s holdings, making the stock its 16th largest position.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Dogwood Wealth Management LLC lifted its holdings in Sandisk by 14.3% in the second quarter. Dogwood Wealth Management LLC now owns 48 shares of the data storage provider’s stock valued at $109,000 after acquiring an additional 6 shares during the last quarter. Nilsine Partners LLC grew its position in Sandisk by 3.2% in the second quarter. Nilsine Partners LLC now owns 226 shares of the data storage provider’s stock worth $514,000 after acquiring an additional 7 shares during the period. Insight Wealth Partners LLC grew its position in Sandisk by 0.4% in the second quarter. Insight Wealth Partners LLC now owns 1,607 shares of the data storage provider’s stock worth $3,654,000 after acquiring an additional 7 shares during the period. Cornerstone Financial Management LLC grew its position in Sandisk by 60.0% in the second quarter. Cornerstone Financial Management LLC now owns 24 shares of the data storage provider’s stock worth $55,000 after acquiring an additional 9 shares during the period. Finally, LifeGoal Investments LLC increased its stake in Sandisk by 3.9% during the third quarter. LifeGoal Investments LLC now owns 242 shares of the data storage provider’s stock worth $421,000 after acquiring an additional 9 shares during the last quarter.

Sandisk Stock Performance NASDAQ:SNDK opened at $1,299.30 on Friday. The stock has a market capitalization of $187.79 billion, a P/E ratio of 17.82, a PEG ratio of 0.13 and a beta of 5.23. The company has a 50 day moving average price of $1,603.61 and a 200 day moving average price of $1,496.95. Sandisk Corporation has a fifty-two week low of $136.29 and a fifty-two week high of $2,354.39.

Sandisk (NASDAQ:SNDK – Get Free Report) last announced its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $33.28 by $5.97. Sandisk had a return on equity of 87.84% and a net margin of 56.47%. The company had revenue of $8.96 billion for the quarter. During the same period in the previous year, the firm earned $0.29 EPS. The firm’s revenue for the quarter was up 371.6% compared to the same quarter last year. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Research analysts forecast that Sandisk Corporation will post 208.94 earnings per share for the current fiscal year. Sandisk announced that its Board of Directors has initiated a share buyback program on Wednesday, August 5th that allows the company to buy back $14.00 billion in shares. This buyback authorization allows the data storage provider to repurchase up to 6.6% of its shares through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Analyst Ratings Changes SNDK has been the topic of a number of research analyst reports. UBS Group restated an “overweight” rating and issued a $1,750.00 target price on shares of Sandisk in a research report on Friday, August 14th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,400.00 price target (up from $1,000.00) on shares of Sandisk in a research note on Thursday, August 6th. Rosenblatt Securities assumed coverage on Sandisk in a report on Tuesday, September 22nd. They set a “buy” rating and a $2,400.00 price target for the company. Sanford C. Bernstein reiterated an “outperform” rating and set a $3,000.00 price target (up from $1,700.00) on shares of Sandisk in a report on Thursday, August 6th. Finally, Bank of America boosted their price objective on shares of Sandisk from $2,100.00 to $2,500.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $2,120.65.

Check Out Our Latest Stock Analysis on SNDK

Key Stories Impacting Sandisk Here are the key news stories impacting Sandisk this week:

Positive Sentiment: Sandisk’s long-term growth case remains supported by strong data-center demand. One analysis argues that the company’s revenue growth, earnings power and $15.5 billion buyback authorization could support further earnings-per-share accretion if cash generation remains robust. Sandisk: The Earnings Boom Is Only Half The Story Positive Sentiment: Sandisk reportedly has at least $93.9 billion of expected revenue secured through multiyear contracts, including financial protections if customers fail to meet commitments. This provides meaningful demand visibility despite near-term market volatility. SanDisk Stock Is Falling on AI Fears. Its $93.9 Billion Contract Book Tells Another Story Positive Sentiment: Bullish analysts say continued AI infrastructure spending and data-center demand could drive substantial additional upside, with one projection placing the shares at $4,128 over the next year. Sandisk Stock Could Be Worth $4,128 in the Next Year Neutral Sentiment: Sandisk was upgraded by Zacks Research from “hold” to “strong buy,” although the upgrade has not offset broader sector selling. Negative Sentiment: Memory-chip stocks, including Sandisk, Micron and SK Hynix, are continuing a multiday selloff. Investors are concerned about Chinese competitors’ server-memory plans, cyclical oversupply and the durability of recent margin expansion. Memory Stocks Extend Selloff on China Competition Fears Negative Sentiment: Cathie Wood warned that memory-chip cycles can be “vicious” and indicated that her ARK strategy is moving away from the group, raising concerns that Sandisk’s rapid gains and expanding margins may not be sustainable. Cathie Wood Says the Memory Chip Trend Is Up but the Cycles Are Vicious Negative Sentiment: Higher Treasury yields and the possibility of an October Federal Reserve rate hike are weighing on growth and AI-related equities, adding to pressure on Sandisk. Nasdaq 100 Slides As Micron, SanDisk, CoreWeave Sink Insider Transactions at Sandisk In other news, CFO Luis Visoso sold 1,000 shares of Sandisk stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $1,568.83, for a total value of $1,568,830.00. Following the completion of the sale, the chief financial officer directly owned 130,976 shares of the company’s stock, valued at approximately $205,479,078.08. The trade was a 0.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Goeckeler sold 33,841 shares of Sandisk stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $1,574.21, for a total value of $53,272,840.61. Following the completion of the sale, the chief executive officer directly owned 382,865 shares of the company’s stock, valued at $602,709,911.65. The trade was a 8.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 77,899 shares of company stock valued at $121,159,122. Corporate insiders own 0.29% of the company’s stock.

Sandisk Company Profile (Free Report)

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices.

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Sandisk (SNDK -6.85%) has been the top-performing S&P 500 stock for most of 2026, until it was recently surpassed by the surging pharmaceutical company Moderna. Still, Sandisk is holding onto second place by a wide margin, and it has risen nearly 500% this year; not a bad one-year gain! 

However, what's in the past is in the past. The question is, can Sandisk repeat its performance again in 2027?

While there are several other strong candidates for stocks looking like great investments in 2027, I have a hard time believing that Sandisk won't be one of them, as the same conditions that pushed it higher in 2026 will remain in 2027.

Image source: The Motley Fool.

The memory chip demand crunch is far from over
Sandisk makes NAND memory chips, which are used for long-term information storage. Devices like solid-state drives (SSDs) use NAND memory, and they are in high demand due to the massive AI data center build-out underway. SSDs don't have any performance characteristics that set one apart from another, so Sandisk's business is akin to a commodity. When demand is high and supply is low, as it is now, prices skyrocket, and this has driven Sandisk's revenue growth throughout 2026.

In the fourth quarter of fiscal year 2026 (ending July 3), Sandisk's revenue soared 372% year over year. That's huge growth, and much of it can be attributed to higher chip prices.

SNDK Sandisk$1,299.30-$95.53 (-6.85%)

NASDAQ · As of 4:00 PM ET 10/16/26

Many investors are worried that this trend could flip and send Sandisk's business crashing once demand goes the other way. That's a valid concern, and history supports that precedent. However, Sandisk is using this opportunity to reshape the industry.

Sandisk is starting to enter into new business model agreements with its customers, which lock clients into committed volumes with defined pricing structures. This makes memory chip prices less subject to demand and supply curves and only subject to contracted agreements. This locks in pricing and gives Sandisk and its investors greater visibility into what to expect in the future.

The long-term effect of this change is that Sandisk becomes less cyclical. However, the market still prices Sandisk stock as if it will experience a cyclical downturn in the near future.

SNDK PE Ratio data by YCharts.

At 19 times trailing earnings and 6.5 times forward earnings, the market isn't pricing in any 2027 growth into the stock. That is a great opportunity for investors to take advantage of, and it could help Sandisk triple throughout 2027 if it hits expectations and remains at its current trailing earnings valuation. That would place Sandisk among the best-performing S&P 500 stocks next year, allowing it to potentially earn another top-five finish in the index.

Well, it's Friday, I've got good news and bad news for investors in Sandisk (SNDK -4.91%) stock.

Bad news first: One of the biggest names in computer memory chipmakers, Sandisk stock declined every single day so far this week, and is down again on Friday, slipping another 3.2% lower through 10:45 a.m. ET.

But now here's the good news: There's basically no new bad news.

Image source: The Motley Fool.

New news and old newsGranted, the old bad news is still in effect. On Monday, Chinese DRAM specialist CXMT, the fourth-largest computer memory maker by market share, announced it has made progress with its new "4F square" technology to increase DRAM storage density. The company plans to have a product ready for market before the end of this year, incorporating the new technology.

And it's investor fears of this new competition from CXMT that have been driving Sandisk stock lower all week long, for a total loss of 15%.

Further worries did surface this morning, of course, when the U.S. Department of Labor reported its September Consumer Price Index data. This showed inflation rising 3.7% year-over-year, 10 basis points faster than expected. Higher inflation can prompt the Federal Reserve to raise interest rates, and this is generally viewed as bad news for tech companies because it raises the cost of debt -- and debt is what a lot of companies have been using lately to buy Sandisk memory chips.

SNDK Sandisk$1,326.36-$68.48 (-4.91%)

NASDAQ · As of 2:15 PM ET 10/16/26

Sandisk looks safeStill, that's a macroeconomic risk that affects all stocks. As far as SanDisk-specific concerns go, I think CXMT is still the big one weighing on investors today -- and, as I've repeatedly stated, it's an unnecessary worry.

CXMT makes DRAM. Sandisk doesn't. CXMT is therefore not a huge threat to Sandisk, and so worries about Sandisk stock seem overblown.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Sandisk (SNDK -0.61%) stock has already delivered an extraordinary run this year, up about 497% year-to-date, as of Oct. 13, 2026. There are risks with storage stocks, given the past boom-and-bust cycles in product pricing. However, the stock, currently priced at $1,416, has a realistic shot at nearly tripling to $4,128 over the next year or so, provided demand for storage and memory continues to outstrip supply and remains strong.

Image source: Getty Images.

CEO says Sandisk is still in the early innings of AI-driven growth
On the August 2026 earnings call, CEO David Goeckeler called AI inference a memory-centric, storage-intensive problem reshaping demand for NAND flash memory. Its leadership in this market is translating into broader customer adoption.

Revenue grew 51% quarter over quarter to $9 billion in the fiscal fourth quarter. Management expects revenue to grow approximately 17% sequentially in fiscal first-quarter 2027, to between $10.3 billion and $10.8 billion. Adjusted (non-GAAP) earnings per share (EPS) are expected to be between $44 and $46.

Sandisk is selling more high-speed solid-state drives (SSDs) to big cloud and AI companies that need fast storage for their most demanding computing tasks. In the latest quarter, it also began shipping a new, higher-capacity product called Stargate, designed for the massive data collections that AI systems create and use.

SNDK Sandisk$1,394.83-$8.51 (-0.61%)

NASDAQ · As of 4:00 PM ET 10/15/26

Over the last year, data center storage has grown from roughly 12% of the company's total bits shipped to 38%, making it Sandisk's fastest-growing market.

Goeckeler said he believes Sandisk is still in the early innings of this opportunity. That outlook aligns with broader AI spending trends. Goldman Sachs Research forecasts that global AI-related investment will exceed $1 trillion this year.

Sandisk's path to a $4,300 share price
The risk for any storage stock is cyclical price fluctuations. However, new long-term agreements with eight customers are expected to cover more than half of bits shipped in fiscal 2027 and two-thirds in fiscal 2028, providing greater visibility into revenue and earnings.

At the current $1,416 share price on Oct. 14, 2026, the stock is trading at a price-to-earnings (P/E) multiple of 19.2. Applying the same trailing multiple to the $215 consensus fiscal 2027 earnings estimate puts the share price at $4,128 next year.

Still, it's difficult to predict how the market will value the stock. If the market senses greater risk of a downturn in storage and memory pricing, or a stall in the AI spending boom, it may value the shares at a lower P/E multiple. Therefore, the stock may not deliver nearly as much upside.

Based on Goeckeler's comment on the runway of growth still ahead, I think the stock is worth buying. Top memory supplier Micron Technology is mostly sold out of advanced memory for 2027, and at higher prices than in 2026. This points to broad market demand for storage and memory that will continue to benefit Sandisk. Even a modest P/E on next year's earnings would send Sandisk stock price over $2,000 in 2027.

Sandisk remains attractively valued at ~7x FY27 EPS, with a fair value estimate of $2,000 conditional on sustained $200 annual EPS. Recent customer contracts totaling $93.9 billion at floor pricing cover a significant portion of future shipments, bolstering confidence in long-term earnings durability. Q1 EPS is projected near $48 versus the consensus $46, but December guidance will be more pivotal for sustaining bullish sentiment.

Sax Wealth Advisors LLC acquired a new position in shares of Sandisk Corporation (NASDAQ:SNDK – Free Report) in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 684 shares of the data storage provider’s stock, valued at approximately $1,190,000.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Handelsbanken Fonder AB boosted its stake in shares of Sandisk by 35.1% in the second quarter. Handelsbanken Fonder AB now owns 57,564 shares of the data storage provider’s stock worth $130,885,000 after acquiring an additional 14,964 shares during the last quarter. Focus Partners Advisor Solutions LLC purchased a new stake in shares of Sandisk during the second quarter worth approximately $4,775,000. Florida Financial Advisors LLC purchased a new stake in shares of Sandisk during the first quarter worth approximately $2,747,000. UNICOM Systems Inc. increased its position in shares of Sandisk by 14.9% during the second quarter. UNICOM Systems Inc. now owns 58,500 shares of the data storage provider’s stock worth $133,013,000 after purchasing an additional 7,600 shares in the last quarter. Finally, Affinity Capital Advisors LLC acquired a new position in Sandisk in the 2nd quarter valued at $2,506,000.

Insider Transactions at Sandisk In related news, CEO David Goeckeler sold 33,841 shares of Sandisk stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $1,574.21, for a total value of $53,272,840.61. Following the completion of the transaction, the chief executive officer owned 382,865 shares in the company, valued at approximately $602,709,911.65. The trade was a 8.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Luis Visoso sold 1,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $1,568.83, for a total value of $1,568,830.00. Following the sale, the chief financial officer directly owned 130,976 shares in the company, valued at $205,479,078.08. This represents a 0.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 77,899 shares of company stock valued at $121,159,122. Corporate insiders own 0.29% of the company’s stock.

Analyst Upgrades and Downgrades Several equities analysts have recently weighed in on SNDK shares. Rosenblatt Securities started coverage on shares of Sandisk in a research note on Tuesday, September 22nd. They issued a “buy” rating and a $2,400.00 price target on the stock. Wells Fargo & Company boosted their price target on shares of Sandisk from $1,400.00 to $1,550.00 and gave the company an “equal weight” rating in a research report on Thursday, August 13th. Jefferies Financial Group reissued a “buy” rating and issued a $1,400.00 price objective (up from $1,000.00) on shares of Sandisk in a report on Thursday, August 6th. JPMorgan Chase & Co. started coverage on shares of Sandisk in a research report on Friday, August 14th. They set an “overweight” rating and a $2,250.00 price objective for the company. Finally, Sanford C. Bernstein restated an “outperform” rating and set a $3,000.00 price objective (up from $1,700.00) on shares of Sandisk in a research report on Thursday, August 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Sandisk presently has a consensus rating of “Moderate Buy” and a consensus price target of $2,120.65. Check Out Our Latest Stock Analysis on SNDK

Sandisk Trading Down 5.3% NASDAQ SNDK opened at $1,403.34 on Thursday. The stock has a fifty day simple moving average of $1,599.14 and a 200-day simple moving average of $1,492.85. The stock has a market cap of $202.82 billion, a PE ratio of 19.25, a P/E/G ratio of 0.15 and a beta of 5.23. Sandisk Corporation has a twelve month low of $130.50 and a twelve month high of $2,354.39.

Sandisk (NASDAQ:SNDK – Get Free Report) last posted its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, beating analysts’ consensus estimates of $33.28 by $5.97. The company had revenue of $8.96 billion for the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. The company’s quarterly revenue was up 371.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Research analysts predict that Sandisk Corporation will post 208.94 EPS for the current year.

Sandisk declared that its board has approved a stock buyback program on Wednesday, August 5th that authorizes the company to repurchase $14.00 billion in shares. This buyback authorization authorizes the data storage provider to repurchase up to 6.6% of its stock through open market purchases. Share buyback programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Key Headlines Impacting Sandisk Here are the key news stories impacting Sandisk this week:

Positive Sentiment: SanDisk entered a partnership with Meta Platforms to provide data-storage options for Meta’s VR glasses, supporting the company’s exposure to artificial intelligence, augmented reality and other long-term data-demand trends. SanDisk Stock Drops Despite Data Storage Partnership With Meta Positive Sentiment: Analyst Nicholas Mugalli reiterated a highly bullish long-term view, projecting a $3,000 price target and arguing that future earnings could make the valuation appear inexpensive. Other analysts also describe SNDK as an attractive buy-the-dip opportunity because of sustained AI-related memory demand. SanDisk Has More Upside Positive Sentiment: S&P Global upgraded SanDisk’s credit rating to BBB from BB+, citing stronger cash flows and rising AI-driven memory demand. A bullish investment case also points to robust NAND pricing, long-term contracts and financial guarantees. SanDisk Credit Rating Upgrade Neutral Sentiment: Strong third-quarter results from semiconductor-equipment maker ASML and continued expectations for AI infrastructure growth provide support for memory demand, but have not been enough to overcome current sector selling. Why Memory Stocks Are Falling Despite ASML Results Negative Sentiment: Chinese memory maker CXMT’s advances and plans to target high-end server memory are raising fears that new competition could pressure SanDisk’s pricing, market share and expected memory-cycle profits. Why Memory Stocks Are Falling Negative Sentiment: Hotter-than-expected U.S. inflation has increased macroeconomic and interest-rate uncertainty, while concerns about AI funding and stretched semiconductor valuations are adding to the sector-wide selloff. Market Open News About Sandisk (Free Report)

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices.

Featured Stories Five stocks we like better than Sandisk Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know Want to see what other hedge funds are holding SNDK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Sandisk Corporation (NASDAQ:SNDK – Free Report).

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This is starting to look serious. Tic-tac-toe, three days in a row, Sandisk (Nasdaq: SNDK) stock has gone nowhere but down. Adding Wednesday's 4.6% decline (as of 2:35 p.m. ET) to similar declines Monday and Tuesday, shares of Sandisk -- one of the world's biggest makers of computer memory chips -- are now down 11% for the week, and approaching a 20% loss for the month.

Don't say you were not warned.

Image source: The Motley Fool.

What's dogging Sandisk stock this weekAs far back as Monday -- my, how time flies! -- I warned that this downturn had the potential to turn into a rout, as investors worried over news that Chinese DRAM company CXMT -- which makes DRAM memory chips -- was closing its technology gap with Western memory chipmakers.

CXMT bragged on Monday that it is making "key progress" on "4F square" technology to increase DRAM storage density. It further promised to introduce products targeting the market for high bandwidth memory (HBM) for AI data centers before the end of this year.

The last time something like this happened, Sandisk stock got cut nearly in half.

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What's next for Sandisk stockAnd yet, several things are worth remembering for investors spooked by the Sandisk sell-off. First and foremost: CXMT makes DRAM memory, but Sandisk doesn't. Instead, Sandisk makes NAND, a related technology that can be used similarly to HBM in a form that Sandisk calls "high bandwidth flash".

But they're not directly comparable, and CXMT is not a direct competitor to Sandisk.

It may not even be much of a competitor to Micron. In a note on StreetInsider.com today, Mizuho analyst Jordan Klein points out that while CXMT promised to "introduce" its 4F square product in 2026, it's probably years away from producing the chips at scale. He also doubts the CXMT product is comparable to HBM chips that Micron builds today, or to Sandisk's HBF. Most likely, it's an ordinary DRAM chip not suitable for AI data centers at all.

TL;DR Sandisk investors are panicking over this. They shouldn't.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.

V létě musel mladý investor Leopold Aschenbrenner zkousnout velkou porážku, když jeho hedgeový fond Situational Awareness musel prodat většinu svého portfolia společnosti Citadel. Bývalý 25letý výzkumník OpenAI se tehdy spálil na extrémní koncentraci zaměřené na firmy spojené s AI infrastrukturou, které potkal velký výprodej. Nyní, o pouhých pár měsíců později, je Aschenbrennerův fond opět pod citelným tlakem.

Největší pozice fondu se od svých lokálních maxim dosažených na přelomu září a října propadly o šest až 30 procent. Největší váhu v portfoliu mají výrobci paměťových čipů SanDisk a Micron Technology, které podle údajů z formuláře 13F za druhé čtvrtletí tvoří dohromady 55 procent portfolia.

Přitom Sandisk je od svého říjnového maxima dole o 19 procent, Micron o 14 procent. Ztrácejí ale i další zástupci v portfoliu: Nebius (-11 %), CoreWeave (-13 %) a SharonAI, jejíž akcie spadly dokonce až o 30 procent, upozornil příspěvek na sociální síti X od účtu sledujícího Aschenbrennerův fond.

Leopold Aschenbrenner's biggest positions are getting hit again
Here's what his top holdings done since October highs:
• SanDisk $SNDK: down 19%
• Bloom Energy $BE: down 6%
• Nebius $NBIS: down 11%
• CoreWeave $CRWV: down 13%
• Micron $MU: down 14%
• SharonAI $SHAZ: down 30%
SanDisk and Micron are 55% of the fund, per Q2 13F
In July, a drawdown like this triggered a forced sale of his book to Citadel

— Leopold Stock Tracker (@LeopoldTracker_) October 13, 2026
Současná situace tak dává vzpomenout na konec července, kdy přílišná sázka na společnosti jako CoreWeave, Nebius, SanDisk nebo Bloom Energy v kombinaci s využíváním vysoké finanční páky (podle některých zdrojů kolem čtyřnásobku vlastního kapitálu) přinutila Aschenbrennera kapitulovat, protože jeho portfolio tehdy ztratilo 67 procent hodnoty během jediného měsíce.

Stalo se tak poté, co na trzích došlo k prudkému výprodeji v AI sektoru, který semlel i zmíněné tituly. Do toho navíc rostly akcie, které fond shortoval, takže fond prodělával na dlouhých i krátkých pozicích zároveň. To nakonec vedlo k jednomu z největších kolapsů hedgeového fondu posledních let.

Aschenbrenner investorům přiznal, že fond se dostal trvalému poškození kapitálu blíž, než by bylo přijatelné. Aby tak zabránil dalším ztrátám, prodal většinu portfolia společnosti Citadel, kterou vede miliardář Ken Griffin.

Restart s větší obezřetností

Po dramatickém výprodeji prošel fond faktickým restartem. Aschenbrenner investorům oznámil, že odstranil veškeré úvěrové financování portfolia, uzavřel krátké pozice a přebudoval proces řízení rizik. Fond si současně ponechal své soukromé investice, včetně významného podílu ve startupu Anthropic, jehož hodnota se pohybuje v miliardách dolarů.

Navzdory červencovému kolapsu zůstává fond po letních událostech stále v působivém zisku. A dobře je na tom i po zmíněném nedávném výprodeji na polovodičových akciích. Od začátku roku je totiž fond v plusu o 57 procent, což je odrazem mimořádně silného zhodnocení z předchozích měsíců.

Současná nemilá situace se však zdá být oproti červencovému kolapsu zásadně odlišná. Zatímco tehdy byly ztráty umocněny vysokou pákou financovanou prostřednictvím prime brokerů a následnými margin cally, tak po letní restrukturalizaci, by měl fond (i přes využívání opčních strategií) fungovat s výrazně konzervativnějším profilem rizika. To znamená, že i další výrazný pokles klíčových pozic by nemusel vést k tak dramatické spirále nucených prodejů, která fond v létě tak tvrdě zasáhla.

Obrázek byl vygenerován v AI.

Rising risk-off sentiment is once again weighing on AI and semiconductor stocks, with some of the market's strongest performers selling off. Concerns over rapidly rising interest rates and uncertain central bank policy, compounded by geopolitical tensions and persistently strong energy prices have prompted investors to rotate into more defensive sectors.

We've seen this play out numerous times throughout the AI bull market. Periodic corrections shake out weaker hands, but the underlying growth trends continue to strengthen. And for investors willing to look beyond short-term volatility, these pullbacks have consistently presented attractive buying opportunities.

The key, in my view, is focusing on companies supplying the mission-critical infrastructure behind the AI buildout, particularly businesses benefiting from supply constraints, strong pricing power and accelerating earnings growth.

Three stocks that stand out today are Sandisk Corporation ((SNDK - Free Report) ), Lumentum ((LITE - Free Report) ) and Jabil ((JBL - Free Report) ). Each represents a different but essential piece of the AI infrastructure boom, spanning memory and storage, optical networking, and advanced electronics manufacturing.

More importantly, all three are benefiting from powerful fundamental tailwinds that appear likely to persist well beyond the current market correction.

Sandisk (SNDK - Free Report) : AI's Insatiable Demand for Memory and StorageSandisk has emerged as one of the biggest beneficiaries of the AI-driven memory boom. Following its separation from Western Digital, the company has become a more direct way to invest in the rapidly expanding demand for NAND flash memory and data storage.

AI systems generate and process enormous volumes of data, and that information needs to be stored, retrieved and moved efficiently. As AI workloads expand, particularly inference applications, demand for high-performance storage continues to grow.

At the same time, memory manufacturers have struggled to keep up with demand, creating one of the most significant supply-demand imbalances the industry has experienced in years. The result has been extraordinary pricing power.

Sandisk's latest quarterly results illustrate just how powerful this trend has become. Fiscal fourth-quarter revenue surged 372% year over year to nearly $9 billion, including a 51% sequential increase. Approximately two-thirds of that sequential growth came from higher pricing, with the remainder driven by increased shipment volumes.

Profitability has exploded alongside revenue. Gross margins reached 84.6%, compared with just 26.2% a year earlier, while non-GAAP earnings climbed to $39.25 per share. The company's data center business has been particularly impressive, with annual revenue surging 437% to more than $5.1 billion.

And according to consensus estimates, the momentum is expected to continue.

For fiscal 2027, analysts forecast revenue growth of 143% to $49.25 billion, followed by another 18.7% increase to $58.46 billion in fiscal 2028. Earnings estimates are even more impressive, with EPS expected to surge 201% this year to $213.31, before climbing another 18.5% to $252.80 next year.

These are extraordinary numbers, and even more remarkable considering the scale of the business.

Yet despite the enormous earnings growth, Sandisk currently trades at just 7x forward earnings and carries a Zacks Rank #2 (Buy).

Of course, that seemingly cheap valuation needs to be considered in the context of the highly cyclical memory industry. When supply is constrained and pricing is exceptionally strong, earnings can surge, making stocks appear unusually inexpensive near the peak of a cycle.

That is the primary risk here. Today's extraordinarily high margins should not be assumed to persist indefinitely, and additional supply or a slowdown in demand could eventually reverse some of the pricing gains.

However, the AI infrastructure boom has introduced a significant new source of structural demand, potentially making this cycle more durable than those of the past. If memory pricing remains elevated longer than investors anticipate, Sandisk's valuation could prove genuinely attractive.

Following its extraordinary rally over the last year, SNDK shares have spent the past six months consolidating in a wide and volatile trading range. Given the size of that range, the most attractive tactical opportunities may come either on a pullback toward support near $1,200 or on a decisive breakout above resistance around $1,800.

The former would offer a more favorable entry near support, while the latter would signal renewed bullish momentum and potentially the start of another leg higher.

Image Source: TradingView

Lumentum (LITE - Free Report) : The Optical Networking BottleneckOne of the most significant challenges facing the AI infrastructure buildout is no longer simply obtaining enough computing power. Increasingly, it is figuring out how to connect all that computing power efficiently.

This is creating an enormous opportunity for Lumentum, a leading developer of advanced optical and photonic technologies.

The company manufactures high-performance lasers, optical components and networking systems that allow enormous quantities of data to move through modern data centers.

As AI clusters become larger and more sophisticated, moving information between GPUs, servers and data centers has become an increasingly difficult engineering challenge. And while adding more computing power is essential, that hardware is only as useful as the networks connecting it.

Traditional electrical connections are increasingly challenged by the bandwidth, distance and power requirements of next-generation AI systems. Optical technologies offer substantially greater bandwidth and improved power efficiency, making them a critical part of the industry's ongoing expansion.

Demand has become so intense that Lumentum recently indicated that some of its AI-related optical components are effectively sold out through early 2029.

That is an extraordinary level of demand visibility, particularly for a hardware supplier, and suggests the industry's capacity constraints are unlikely to disappear overnight.

The financial implications are becoming increasingly apparent.

Lumentum's fiscal fourth-quarter revenue more than doubled year over year to approximately $1.01 billion, while non-GAAP earnings surged to $3.23 per share from $0.88 in the year-ago quarter. Operating margins have also expanded dramatically, reaching 36.6% from just 15% a year earlier.

And based on current analyst forecasts, the company is only getting started.

According to Zacks consensus estimates, fiscal 2027 revenue is projected to more than double, rising 107% to $6.25 billion. Analysts then expect another 60.5% increase in fiscal 2028, bringing annual sales above $10 billion.

Earnings growth should be even more explosive. EPS is expected to surge 146.8% to $21.40 this fiscal year, followed by another 64% increase to $35.08 next year.

These forecasts represent one of the more aggressive growth trajectories anywhere in the AI infrastructure industry.

That growth comes at a price, however. Lumentum currently trades at approximately 46.4x forward earnings, a considerable premium even among rapidly growing technology companies.

While the valuation is elevated, it is not necessarily unreasonable given the company's extraordinary earnings outlook and unusually strong demand visibility.

Beyond its existing products, Lumentum is positioned to benefit from emerging technologies including optical circuit switching, 1.6-terabit networking modules and co-packaged optics. These technologies should become increasingly important as hyperscalers build larger AI clusters while attempting to contain networking costs and power consumption.

The main risk is that expectations have become exceptionally high. Any disappointment in orders, capacity expansion or margins could trigger substantial volatility, particularly following the stock's enormous rally.

Nevertheless, with its products occupying an increasingly critical position in AI infrastructure and demand expected to substantially exceed available supply, Lumentum remains one of the most compelling growth stories in the sector.

After breaking out from a significant consolidation earlier this month, LITE shares have pulled back to retest the breakout level.

This is a critical area to watch. Ideally, the stock should find support here and resume its uptrend, confirming the breakout. A failure to hold this level, however, could open the door to further downside and potentially serve as an early warning sign for the broader AI infrastructure trade.

Image Source: TradingView

Jabil (JBL - Free Report) : My Favorite AI Stock on This PullbackOf the three stocks discussed today, Jabil may offer the most compelling combination of growth, valuation and technical positioning.

Unlike Sandisk and Lumentum, which operate in highly specialized areas of memory and optical networking, Jabil provides advanced manufacturing, engineering and supply chain services to some of the world's largest technology companies.

Its capabilities span data center hardware, server infrastructure, networking equipment, power systems and other sophisticated electronics.

Building AI infrastructure at scale involves far more than purchasing GPUs. Companies need complex server assemblies, networking systems, power distribution equipment, cooling infrastructure and an enormous network of components and suppliers.

Jabil helps customers manage this complexity, allowing them to ramp production and deploy infrastructure more efficiently.

And as hyperscalers continue committing hundreds of billions of dollars to AI infrastructure, Jabil is capturing a rapidly growing share of that spending.

In fiscal 2026, revenue increased 21% to $36 billion, while core operating margins expanded by 40 basis points. The company also generated more than $1.5 billion in adjusted free cash flow.

More importantly, management expects the growth to accelerate considerably in fiscal 2027.

The company recently guided for approximately $44.5 billion in revenue this year, representing 24% growth, while core earnings are expected to rise 34% to $17.55 per share.

AI-related revenue alone is expected to surge 54% to approximately $22.1 billion, approaching half of total sales.

That is a remarkable transformation for a company that has historically operated in the relatively mature electronics manufacturing industry.

And the consensus outlook suggests the momentum should continue well beyond the current year.

Analysts expect fiscal 2027 revenue of $44.62 billion, followed by another 15.3% increase to $51.45 billion in fiscal 2028. Earnings are expected to grow 34.5% to $17.61 per share this year, then another 25% to $22.02 next year.

What's particularly attractive is that investors aren't being asked to pay an excessive premium for that growth.

Jabil currently trades at just 17.7x forward earnings and carries a Zacks Rank #1 (Strong Buy), highlighting the strength of its earnings outlook and estimate revision trends.

For a company expected to grow earnings more than 34% this year and another 25% next year, that valuation looks especially reasonable.

Jabil also offers some diversification beyond AI infrastructure, with exposure to healthcare, automotive, industrial and other end markets. While AI has become an increasingly important growth driver, the company is not entirely dependent on a single industry.

There are risks, of course. Electronics manufacturing is a relatively low-margin business, and even modest disruptions to customer spending or manufacturing efficiency can have an outsized impact on profitability.

However, the combination of accelerating revenue growth, improving margins and substantial free cash flow generation puts Jabil in a particularly attractive position.

Along with the broader AI trade, JBL shares began correcting over the summer. Since then, the stock has carved out a compelling bullish wedge pattern, with support near $285 and resistance around $320.

A decisive breakout in either direction would provide an important signal, with a move above resistance suggesting the uptrend is ready to resume, while a breakdown below support could open the door to further downside.

Of the three stocks highlighted today, I think Jabil has the cleanest technical setup. Combined with its Zacks Rank #1, impressive growth forecasts and comparatively modest valuation, it stands out as my favorite opportunity on the current pullback.

Image Source: TradingView

AI Infrastructure Still Offers Compelling OpportunitiesThe recent selling pressure across AI-related stocks is understandably frustrating, particularly after the enormous gains many of these companies have delivered.

But investors should distinguish between deteriorating business fundamentals and a correction driven by changing sentiment, crowded positioning or valuation concerns.

For now, the fundamental picture across the most critical areas of AI infrastructure remains exceptionally strong.

Importantly, these companies are not merely trading on distant expectations of AI adoption. Their revenue, earnings and forward guidance already reflect significant real-world demand.

That doesn't mean the stocks cannot fall further. Valuations remain elevated in parts of the sector, and a meaningful slowdown in hyperscaler capital expenditures would present a serious risk to the broader investment thesis.

But until there is convincing evidence of a sustained deterioration in AI infrastructure spending or earnings expectations, I continue to view these corrections as opportunities rather than a reason to abandon the theme.

For investors looking to take advantage of the current weakness, Sandisk, Lumentum and Jabil represent three compelling ways to gain exposure to some of the most important and supply-constrained segments of the AI infrastructure boom.

Uh-oh. It's starting again. Competition from China on computer memory sales is roiling stock markets, and once again, Sandisk (SNDK -2.21%) stock looks caught in the turmoil.

Last time this happened, in July, it cost Sandisk stock a near-50% decline in a month. Should investors expect a repeat of July's troubles?

Well, Sandisk stock shed 6% on Monday, and as markets reopen Tuesday, Sandisk stock is falling another 3.5% as of 11 a.m. ET.

Image source: The Motley Fool.

CXMT in the newsBlame Chinese DRAM company ChangXin Memory Technologies, CXMT. CXMT went public in July with a $487 billion market capitalization and a promise to expand DRAM production and steal market share from Western computer memory makers. In a supply-constrained market, even Apple was looking to buy memory chips from CXMT!

That plan fell apart after Apple discovered CXMT wanted it to pay the same (or worse) prices for DRAM as SK Hynix and Samsung were charging. And seeing as CXMT's chips were "two or three generations" behind current DRAM technology, Apple declined.

But now, CXMT is making a move to improve its technology. The company's new "4F square" stacked DRAM architecture promises to increase the storage density of its chips and make the product more competitive with Micron's, SK's, and Samsung's wares. CXMT hopes to use the new technology to begin producing high-bandwidth memory (HBM) later this year.

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Should Sandisk investors worry?Memory supply remains in deficit and may get even tighter next year. So long as CXMT's chips primarily supply the low end of the mobile phone market, rather than AI data centers, Sandisk's high-margin AI sales should be safe. Moreover, CXMT isn't (yet) producing NAND chips, which are Sandisk's specialty.

Although both companies target HBM, they're approaching from different directions. I see greater risk to Micron stock than to Sandisk.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.

Since spinning off from Western Digital in February 2025, Sandisk (SNDK -6.39%) has become one of the biggest beneficiaries of the artificial intelligence (AI) infrastructure boom. Over the past year, Sandisk stock has soared 1,100%. In 2026 alone, its gain of 570% makes it the second best performer in the Nasdaq-100.

Yet despite its extraordinary price appreciation, Sandisk trades at a modest valuation. With memory shortages potentially extending through 2028, could Sandisk's valuation actually be too conservative?

Image source: The Motley Fool.

How the memory shortage is benefiting Sandisk
Sandisk specializes in NAND flash memory, a technology used to power solid-state drives, smartphones, computers, and storage systems. While Nvidia GPUs receive most of the attention surrounding AI chips, the enormous amounts of data generated by those accelerators must be stored somewhere. That's creating a powerful tailwind for storage suppliers.

During its late September earnings report, Micron Technology indicated that memory supply bottlenecks could persist through 2027 and 2028. This commentary aligns with Sandisk's management, which has previously highlighted how strong customer demand is limiting supply.

So far, the memory boom has made a dramatic financial impact on Sandisk. The company generated $20.3 billion in revenue during fiscal 2026, representing 175% year-over-year growth. Meanwhile, Wall Street expects fiscal 2027 revenue to approach $49 billion, more than doubling again. For a historically cyclical industry, these are encouraging growth numbers.

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Sandisk's valuation still has room to expand
Wall Street expects Sandisk to generate approximately $215 in earnings per share during fiscal 2027. At a share price around $1,585, that translates into a forward price-to-earnings ratio of just 7.4. That looks inexpensive given the company's explosive revenue and profit growth.

SNDK Revenue (TTM) data by YCharts

It's important to note that memory manufacturers have historically traded at lower multiples because their profitability is more sensitive to supply and demand dynamics. When memory prices fall, earnings can erode surprisingly quickly.

But what if this AI-driven cycle is different? If AI infrastructure demand continues accelerating while NAND production remains constrained, Sandisk should enjoy unusually strong earnings for several years. This is what makes the company's shift toward multi-year customer agreements so savvy, as they provide more predictable revenue and earnings potential. In turn, growth investors could begin to assign Sandisk stock a higher valuation multiple.

Where could Sandisk stock trade by December?
In a downside scenario, investors may become concerned about weakening NAND prices or an eventual supply glut. If Sandisk were to trade at 5.5 times projected earnings, shares could retreat toward $1,182, representing about 25% downside to today's prices.

What I think is most realistic is Micron's supply outlook will prove accurate following Sandisk's upcoming earnings report on Oct. 29. At that time, investors could become more comfortable expanding the multiple. At nine times forward earnings, Sandisk would trade at approximately $1,935, implying 22% upside.

In a particularly bullish scenario, Sandisk's guidance could trigger both upward earnings revisions and multiple expansion. At 11 times projected earnings, Sandisk could approach $2,365, representing roughly 49% upside.

All told, I see a reasonable path toward $1,900 by year's end. Smart investors understand that Sandisk's modest valuation profile could reflect peak-cycle earnings rather than a genuine bargain. Nevertheless, secular tailwinds suggest Sandisk will continue benefiting from AI infrastructure demand and constrained memory supply. Against this backdrop, Sandisk looks like a compelling semiconductor stock to buy and hold as AI infrastructure continues to accelerate.

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