Investors May Be Missing AI Market Winners
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Source: Newsfilter
- Investor Reliance on Index Funds: Cramer highlights that many investors are overly dependent on index funds and ETFs, which prevents them from benefiting from significant individual stock movements, as evidenced by Snowflake's 36% surge following strong earnings.
- Skepticism Towards Obvious Themes: He argues that investors often dismiss seemingly 'obvious' investment opportunities, suggesting that companies like Salesforce, Oracle, and Microsoft could also capitalize on AI strategies, thus missing out on market potential.
- Shadow of the Dot-Com Bust: Cramer notes that many investors remain scarred by the 2000 internet stock collapse, causing them to overlook opportunities with profitable companies, particularly in the memory and storage sectors.
- Prospects of AI Data Center Boom: He emphasizes that the current AI market is fundamentally different from the speculative internet companies of the late 1990s, asserting that the AI data center boom is far from over, urging investors to seize this market opportunity.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 1641.640
Low
220.00
Averages
283.69
High
410.00
Current: 1641.640
Low
220.00
Averages
283.69
High
410.00
About SNDK
SanDisk Corporation is a developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology and has consumer brands and franchises globally. The Company's solutions include a range of solid state drives (SSDs) embedded products, removable cards, universal serial bus (USB) drives, and wafers and components. Its broad portfolio of technology and products addresses multiple end markets of Datacenter, Edge and Consumer. Its Datacenter end market is composed primarily of products for public or private cloud environments and enterprise customers. The Company, through the Edge end market, provides original equipment manufacturer and channel customers a broad array of high-performance flash solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Company serves the Consumer end market with a broad range of retail and other end-user products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Susquehanna Raises SanDisk Price Target to $3,250 Amid Strong Memory Pricing Trends
- DRAM Price Surge: Susquehanna's channel checks indicate that second-quarter DRAM average selling prices are set to rise by 50% to 60% sequentially, surpassing the market's expectation of a 50% increase, highlighting a robust recovery trend in the memory market.
- NAND Price Outlook: NAND flash average selling prices are projected to climb by 75% to 100% quarter over quarter, indicating sustained strong demand for memory, which further boosts confidence in memory chip manufacturers.
- Price Target Increase: Susquehanna raised its price target for SanDisk from $2,000 to $3,250, implying nearly 98% upside from current levels, reflecting analysts' optimistic outlook on the company's future performance.
- Positive Market Reaction: SanDisk shares rose nearly 2% in Friday's opening trade, having increased 602% year-to-date, demonstrating investor confidence in the memory market outlook, although retail sentiment on Stocktwits remains in the 'bearish' territory.
See More
Micron and Sandisk Price Targets Raised Amid Memory Strength
- Price Target Increase: Susquehanna raised Micron's price target from $600 to $1,750 and Sandisk's from $2,000 to $3,250, reflecting sustained strength in the memory and storage markets, which enhances investor confidence in both companies.
- Strong DRAM Market: Analyst Mehdi Hosseini noted that the strength in DRAM is primarily driven by rising commodity prices, with a greater share of DRAM bits allocated to HBM and server applications, which is expected to boost future revenue growth and market share.
- Growing NAND Demand: Incremental demand from AI inferencing is driving stronger bit demand for NAND, with expectations of further ASP increases into the second half of 2026, indicating the companies' competitive edge in emerging technology sectors.
- Supply Chain Constraints: While enterprise SSD demand is expected to accelerate from Q2 to Q3, tight memory supply may lead OEMs to face lower shipment volumes in the second half, potentially pushing server and storage system shipments into the first half of 2027, impacting overall market dynamics.
See More
US Stocks Close Higher, Nasdaq Hits All-Time High
- Market Recovery: The S&P 500 rose by 0.58% and the Nasdaq 100 climbed 0.84%, reaching all-time highs, reflecting market optimism following the US-Iran ceasefire agreement, which may promote economic stability.
- Economic Data Impact: The US April core PCE price index increased by 3.3% year-on-year, meeting expectations, but the unexpected 1.1% decline in April capital goods orders indicates economic recovery fragility, potentially influencing the Fed's monetary policy decisions.
- Rising Unemployment Claims: Initial jobless claims in the US rose by 5,000 to 215,000, exceeding expectations, reflecting weakness in the labor market, which may heighten investor concerns about the economic outlook.
- Earnings Season Insights: As of Thursday, 83% of the 482 S&P 500 companies reported earnings above estimates, with Q1 earnings projected to grow by 12% year-on-year, demonstrating corporate resilience despite a slowdown in the tech sector.
See More
Investors Missing Out on Market Winners
- Market Surge: Snowflake's stock surged approximately 36% on Thursday following strong earnings and a $6 billion commitment to Amazon Web Services, indicating robust growth potential in the cloud computing sector.
- Investor Reliance on Index Funds: Cramer highlighted that many investors are overly reliant on index funds and ETFs, which prevents them from capitalizing on significant gains in individual stocks, stressing that this strategy limits their investment opportunities.
- Overlooking Obvious Opportunities: Cramer believes that investors often dismiss opportunities because the investment thesis seems too obvious, particularly in the AI space, where other companies like Salesforce, Oracle, and Microsoft could also benefit from successful AI strategies.
- Profitability of AI Leaders: Unlike the speculative companies during the 2000 internet bubble, Cramer asserts that today's AI leaders are largely profitable businesses generating substantial earnings and cash flow, urging investors not to overlook this market opportunity.
See More
Investors May Be Missing AI Market Winners
- Investor Reliance on Index Funds: Cramer highlights that many investors are overly dependent on index funds and ETFs, which prevents them from benefiting from significant individual stock movements, as evidenced by Snowflake's 36% surge following strong earnings.
- Skepticism Towards Obvious Themes: He argues that investors often dismiss seemingly 'obvious' investment opportunities, suggesting that companies like Salesforce, Oracle, and Microsoft could also capitalize on AI strategies, thus missing out on market potential.
- Shadow of the Dot-Com Bust: Cramer notes that many investors remain scarred by the 2000 internet stock collapse, causing them to overlook opportunities with profitable companies, particularly in the memory and storage sectors.
- Prospects of AI Data Center Boom: He emphasizes that the current AI market is fundamentally different from the speculative internet companies of the late 1990s, asserting that the AI data center boom is far from over, urging investors to seize this market opportunity.
See More
Druckenmiller Sells Alphabet, Shifts to AI Hardware Investments
- Portfolio Shift: Stanley Druckenmiller's Duquesne Family Office completely sold its shares in Alphabet according to the latest quarterly filing, indicating a clear departure from a market favorite and reflecting increased confidence in AI hardware investments.
- New Investment Focus: He established new positions in AI hardware companies like Sandisk, Micron, and Seagate, particularly in the memory and storage sector, benefiting from surging demand in AI data centers, with Sandisk's Q3 revenue tripling year-over-year to $5.95 billion.
- Custom Silicon Investments: Druckenmiller also invested in Broadcom and Arm Holdings, with the former's AI revenue soaring 106% year-over-year to $8.4 billion, indicating strong demand for custom accelerators from cloud companies and suggesting a bullish outlook for AI hardware.
- Market Risk Warning: While Druckenmiller's investment strategy appears successful, the cyclical nature of the memory and storage industry poses risks at current high valuations, especially as Alphabet continues to report a 22% revenue growth post-sale, highlighting its ongoing business strength.
See More
Susquehanna Raises SanDisk Price Target to $3,250 Amid Strong Memory Pricing Trends
- DRAM Price Surge: Susquehanna's channel checks indicate that second-quarter DRAM average selling prices are set to rise by 50% to 60% sequentially, surpassing the market's expectation of a 50% increase, highlighting a robust recovery trend in the memory market.
- NAND Price Outlook: NAND flash average selling prices are projected to climb by 75% to 100% quarter over quarter, indicating sustained strong demand for memory, which further boosts confidence in memory chip manufacturers.
- Price Target Increase: Susquehanna raised its price target for SanDisk from $2,000 to $3,250, implying nearly 98% upside from current levels, reflecting analysts' optimistic outlook on the company's future performance.
- Positive Market Reaction: SanDisk shares rose nearly 2% in Friday's opening trade, having increased 602% year-to-date, demonstrating investor confidence in the memory market outlook, although retail sentiment on Stocktwits remains in the 'bearish' territory.
See More
Micron and Sandisk Price Targets Raised Amid Memory Strength
- Price Target Increase: Susquehanna raised Micron's price target from $600 to $1,750 and Sandisk's from $2,000 to $3,250, reflecting sustained strength in the memory and storage markets, which enhances investor confidence in both companies.
- Strong DRAM Market: Analyst Mehdi Hosseini noted that the strength in DRAM is primarily driven by rising commodity prices, with a greater share of DRAM bits allocated to HBM and server applications, which is expected to boost future revenue growth and market share.
- Growing NAND Demand: Incremental demand from AI inferencing is driving stronger bit demand for NAND, with expectations of further ASP increases into the second half of 2026, indicating the companies' competitive edge in emerging technology sectors.
- Supply Chain Constraints: While enterprise SSD demand is expected to accelerate from Q2 to Q3, tight memory supply may lead OEMs to face lower shipment volumes in the second half, potentially pushing server and storage system shipments into the first half of 2027, impacting overall market dynamics.
See More
US Stocks Close Higher, Nasdaq Hits All-Time High
- Market Recovery: The S&P 500 rose by 0.58% and the Nasdaq 100 climbed 0.84%, reaching all-time highs, reflecting market optimism following the US-Iran ceasefire agreement, which may promote economic stability.
- Economic Data Impact: The US April core PCE price index increased by 3.3% year-on-year, meeting expectations, but the unexpected 1.1% decline in April capital goods orders indicates economic recovery fragility, potentially influencing the Fed's monetary policy decisions.
- Rising Unemployment Claims: Initial jobless claims in the US rose by 5,000 to 215,000, exceeding expectations, reflecting weakness in the labor market, which may heighten investor concerns about the economic outlook.
- Earnings Season Insights: As of Thursday, 83% of the 482 S&P 500 companies reported earnings above estimates, with Q1 earnings projected to grow by 12% year-on-year, demonstrating corporate resilience despite a slowdown in the tech sector.
See More
Investors Missing Out on Market Winners
- Market Surge: Snowflake's stock surged approximately 36% on Thursday following strong earnings and a $6 billion commitment to Amazon Web Services, indicating robust growth potential in the cloud computing sector.
- Investor Reliance on Index Funds: Cramer highlighted that many investors are overly reliant on index funds and ETFs, which prevents them from capitalizing on significant gains in individual stocks, stressing that this strategy limits their investment opportunities.
- Overlooking Obvious Opportunities: Cramer believes that investors often dismiss opportunities because the investment thesis seems too obvious, particularly in the AI space, where other companies like Salesforce, Oracle, and Microsoft could also benefit from successful AI strategies.
- Profitability of AI Leaders: Unlike the speculative companies during the 2000 internet bubble, Cramer asserts that today's AI leaders are largely profitable businesses generating substantial earnings and cash flow, urging investors not to overlook this market opportunity.
See More
Investors May Be Missing AI Market Winners
- Investor Reliance on Index Funds: Cramer highlights that many investors are overly dependent on index funds and ETFs, which prevents them from benefiting from significant individual stock movements, as evidenced by Snowflake's 36% surge following strong earnings.
- Skepticism Towards Obvious Themes: He argues that investors often dismiss seemingly 'obvious' investment opportunities, suggesting that companies like Salesforce, Oracle, and Microsoft could also capitalize on AI strategies, thus missing out on market potential.
- Shadow of the Dot-Com Bust: Cramer notes that many investors remain scarred by the 2000 internet stock collapse, causing them to overlook opportunities with profitable companies, particularly in the memory and storage sectors.
- Prospects of AI Data Center Boom: He emphasizes that the current AI market is fundamentally different from the speculative internet companies of the late 1990s, asserting that the AI data center boom is far from over, urging investors to seize this market opportunity.
See More
Druckenmiller Sells Alphabet, Shifts to AI Hardware Investments
- Portfolio Shift: Stanley Druckenmiller's Duquesne Family Office completely sold its shares in Alphabet according to the latest quarterly filing, indicating a clear departure from a market favorite and reflecting increased confidence in AI hardware investments.
- New Investment Focus: He established new positions in AI hardware companies like Sandisk, Micron, and Seagate, particularly in the memory and storage sector, benefiting from surging demand in AI data centers, with Sandisk's Q3 revenue tripling year-over-year to $5.95 billion.
- Custom Silicon Investments: Druckenmiller also invested in Broadcom and Arm Holdings, with the former's AI revenue soaring 106% year-over-year to $8.4 billion, indicating strong demand for custom accelerators from cloud companies and suggesting a bullish outlook for AI hardware.
- Market Risk Warning: While Druckenmiller's investment strategy appears successful, the cyclical nature of the memory and storage industry poses risks at current high valuations, especially as Alphabet continues to report a 22% revenue growth post-sale, highlighting its ongoing business strength.
See More
