$SanDisk Corp.(SNDK)$ Morgan Stanley note part two highlights NVIDIA's KV Cache description for Vera Rubin as a stock driver. Most industry contacts seem only vaguely aware of specifics, though cloud demand forecasts point to substantial increases ahead. We're significantly raising NAND pricing estimates again while keeping December quarter projections aligned with management guidance. March quarter modelling now shows: revenue $2.94bn/non-GAAP GM 52.6%/non-GAAP EPS $5.71 versus prior $2.64bn/48.3%/$4.27. This reflects moving NAND ASP from up 10% q/q to up 20% and bits from down 8% q/q to down 6% q/q. For full CY26, estimates shift from $12.6bn/53.3%/$24.82 to $14.56bn/58.1%/$33.75. With numbers climbing, our through-cycle $13 earnings power estimate appears too low since CY26 and CY27 should exceed it comfortably. Thus raising through-cycle estimate to $21 and applying a higher multiple (23x vs. 21x), pushing price target from $273 to $483. Recalibration will follow earnings.
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