SanDisk Extends Joint Venture with Kioxia to 2034
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Joint Venture Extension: SanDisk and Kioxia have extended their joint venture at the Yokkaichi Plant by five years, now set to expire on December 31, 2034, ensuring stable collaboration and technology sharing in advanced 3D flash memory production.
- Financial Arrangement: Under the renewed agreement, SanDisk will pay Kioxia $1.17 billion for manufacturing services, with payments scheduled in installments from 2026 to 2029, further solidifying their financial partnership.
- Positive Market Reaction: SanDisk shares surged 13% in after-hours trading, reflecting market optimism regarding the joint venture extension and its potential to enhance the company's competitiveness in the NAND market.
- Innovation-Driven Growth: The partnership will continue to leverage AI-enabled smart manufacturing and economies of scale to improve production efficiency, ensuring a leading position in the rapidly growing flash memory market to meet increasing demand.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNDK is 283.69 USD with a low forecast of 220.00 USD and a high forecast of 410.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 527.630
Low
220.00
Averages
283.69
High
410.00
Current: 527.630
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 cloud, client and consumer. Its cloud end market is comprised primarily of products for public or private cloud environments and enterprise customers. The Company, through the client end market, provides numerous data solutions that it incorporates into its client’s devices, which consist of solid state drive desktop and notebook personal computers, gaming consoles and set top boxes, and flash-based embedded storage products. The Company serves the consumer end market with a portfolio of solid state drives and removable flash, including cards and USB flash drives.
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.
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SanDisk Extends Joint Venture with Kioxia to 2034
- Joint Venture Extension: SanDisk and Kioxia have extended their joint venture at the Yokkaichi Plant by five years, now set to expire on December 31, 2034, ensuring stable collaboration and technology sharing in advanced 3D flash memory production.
- Financial Arrangement: Under the renewed agreement, SanDisk will pay Kioxia $1.17 billion for manufacturing services, with payments scheduled in installments from 2026 to 2029, further solidifying their financial partnership.
- Positive Market Reaction: SanDisk shares surged 13% in after-hours trading, reflecting market optimism regarding the joint venture extension and its potential to enhance the company's competitiveness in the NAND market.
- Innovation-Driven Growth: The partnership will continue to leverage AI-enabled smart manufacturing and economies of scale to improve production efficiency, ensuring a leading position in the rapidly growing flash memory market to meet increasing demand.
Continue Reading