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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
