Reward 1000 Tiger-coinsThe memory-chip rally just got another major boost. SK hynix delivered a blockbuster quarter, with revenue surging 328% year over year and operating profit jumping 632% to record highs. Investors cheered the results, sending the stock nearly 11% higher in South Korea and 13.3% higher in U.S. trading. $SK hynix(SKHY)$
The numbers reinforced a powerful theme on Wall Street: AI infrastructure spending is driving extraordinary demand for memory, while tighter supply is giving chipmakers more pricing power.
$SanDisk Corp.(SNDK)$ is set to report its fiscal first-quarter results after the U.S. market closes on October 29.Can it deliver a strong enough outlook to keep the rally going?
What SK Hynix's Earnings Tell Us
SK hynix reported quarterly revenue of KRW 104.62 trillion, up 328% from a year earlier, while operating profit climbed 632% to KRW 83.33 trillion.
Demand for high-bandwidth memory (HBM), a critical component in AI accelerators, remains exceptionally strong. But the recovery is extending beyond AI-specific chips. According to MarketWatch, SK hynix saw DRAM selling prices rise roughly 20%–30% sequentially, while NAND prices increased approximately 20%–25%.
Unlike SK hynix, which has a major presence in HBM, SanDisk is primarily exposed to NAND flash memory and solid-state drives (SSDs). Rising NAND prices and stronger demand for enterprise storage could translate into higher revenue and better margins.
Wall Street Is Expecting Big Numbers
According to the Bloomberg BEST consensus estimates provided for SanDisk's fiscal Q1 2027:
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Revenue: $10.70 billion, up approximately 363% year over year
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Adjusted EPS: $46.36, up approximately 3,700%
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Adjusted net income: $7.17 billion
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Operating profit: $8.50 billion
SanDisk has also beaten revenue estimates in six of its previous seven reported quarters. Bloomberg data indicates an implied post-earnings move of approximately 8.3%, compared with an average historical one-day earnings move of about 7.2%.
Three Things to Watch
1. NAND pricing: How much upside is left?
Higher memory prices have been a major driver of the industry's earnings recovery. For SanDisk, investors will be watching whether stronger NAND pricing translates into further margin expansion — and, more importantly, whether management expects pricing momentum to continue into the next quarter.
2. AI storage demand: Can enterprise SSDs deliver?
AI data centers need more than GPUs and high-bandwidth memory. They also require fast, reliable storage to handle massive datasets, model training and inference workloads. That creates an opportunity for enterprise SSD suppliers such as SanDisk. Investors will be looking for signs of stronger data-center demand, a more profitable product mix and improving enterprise storage sales.
3. After the rally, is a beat enough?
Memory stocks have already priced in a significant improvement in industry fundamentals. SK hynix's post-earnings rally shows that investors are still willing to reward exceptional results. But with expectations running high, SanDisk may need more than a routine earnings beat.
Stronger guidance could fuel another leg higher. A disappointing outlook could trigger profit-taking — even if the headline numbers look impressive.
🎯 Stock Prediction
How will SNDK perform on the first trading day after earnings?
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A. Surge more than 10% 🚀
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B. Gain 5%–10% 📈
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C. Trade between -5% and +5%
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D. Fall 5%–10% 📉
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E. Drop more than 10% 💥
💬 What's Your Take?
SK hynix just delivered blockbuster earnings. Will SanDisk be the next memory stock to rally?Are you bullish on the NAND pricing cycle, or has the market already priced in too much good news?
🎁 Rewards 🎁
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We'll random pick the most creative and relatable entries to win Tiger Coins! $SanDisk Corp.(SNDK)$ $SK hynix(SKHY)$
Event Period
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Ends: 04:00 AM SGT, October 30
Comments
SK hynix’s record earnings strengthen the bullish case for $SanDisk (SNDK), but NAND pricing and enterprise SSD demand will determine whether the rally continues.
SanDisk’s guidance already targets $10.3–$10.8 billion in revenue and $44–$46 in adjusted EPS. With expectations elevated, simply beating estimates may not be enough.
AI data centers need more storage, creating growth opportunities. If management signals sustained pricing power and stronger demand, further gains are possible. Investors should also watch gross margins and inventory trends for evidence that pricing power is translating into sustainable profits.
However, memory stocks are cyclical. Even strong results could trigger profit-taking if guidance disappoints.
My verdict: B is my base case. Fundamentals remain strong, but forward guidance—not headline earnings—will determine the next move.
@Tiger_Earnings [财迷]
For $SanDisk Corp.(SNDK)$ , I think rising NAND prices and stronger enterprise storage demand could support revenue growth and margin expansion. However, with expectations already high, I believe forward guidance will matter more than simply beating earnings estimates.
My prediction is B: a gain of 5%–10% after earnings. I remain optimistic about the long-term memory cycle, but I will avoid chasing the rally and prefer to accumulate gradually during pullbacks. For me, discipline matters more than trying to catch every short-term move.
@Tiger_comments @TigerStars @TigerClub @Tiger_Earnings
AI data-centre demand and stronger NAND pricing are positive catalysts for SanDisk. However, after the recent memory stock rally, some good news may already be priced in.
I’d watch gross margin guidance closely. Strong margins would suggest the NAND pricing cycle still has room to run. I’d remain bullish long term but avoid chasing the initial earnings reaction.
I am bullish on the NAND cycle, but less bullish on the immediate stock reaction. SK hynix confirms that AI infrastructure demand and memory pricing are exceptionally strong, which should be favourable for SanDisk’s enterprise SSD business and margins.
The problem is expectations. After the huge run in memory stocks, a normal beat may no longer be enough. I think investors will care more about forward NAND pricing, enterprise SSD growth and margin guidance than headline EPS.
For another major leg higher, SanDisk needs to show that AI storage demand is broadening while supply remains disciplined. If management signals that pricing and margins can keep improving into 2027, I would become more bullish.
Great earnings are expected now. The real surprise would be evidence that the memory upcycle lasts longer than the market currently assumes.