Sandisk Faces Warning of Demand Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SNDK?
Source: NASDAQ.COM
- Demand Decline Warning: Bernstein's latest report indicates that while Sandisk is performing well this quarter, high prices are depressing memory demand, forcing OEMs and module houses to reduce purchases, which could impact future sales.
- Price Forecast Changes: Bernstein predicts that NAND and DRAM prices will see a significant increase in Q2 2026, but may notably decelerate in Q3, suggesting potential challenges for Sandisk's Q1 2027.
- Financial Outlook: Sandisk's latest earnings report projects Q4 sales of $8 billion, rising gross margins, and profits between $30 and $33 per share, which should remain stable if Bernstein's predictions hold true.
- Investor Confidence Shaken: Despite Sandisk's stock soaring 3,756% over the past year, analysts' concerns about its future performance have led investors to reassess its value, especially since Sandisk was not included in Motley Fool's list of top recommended stocks.
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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: 1339.960
Low
220.00
Averages
283.69
High
410.00
Current: 1339.960
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.
Sandisk Faces Warning of Demand Decline
- Demand Decline Warning: Bernstein's latest report indicates that while Sandisk is performing well this quarter, high prices are depressing memory demand, forcing OEMs and module houses to reduce purchases, which could impact future sales.
- Price Forecast Changes: Bernstein predicts that NAND and DRAM prices will see a significant increase in Q2 2026, but may notably decelerate in Q3, suggesting potential challenges for Sandisk's Q1 2027.
- Financial Outlook: Sandisk's latest earnings report projects Q4 sales of $8 billion, rising gross margins, and profits between $30 and $33 per share, which should remain stable if Bernstein's predictions hold true.
- Investor Confidence Shaken: Despite Sandisk's stock soaring 3,756% over the past year, analysts' concerns about its future performance have led investors to reassess its value, especially since Sandisk was not included in Motley Fool's list of top recommended stocks.
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A Major Investor Invests $12 Million in the Storage Memory Sector.
Whale Investment: The whale "0x3Ed" added $2.668 million USD to HyperLiquid and opened a 20x leveraged long position on the EWY (iShares MSCI South Korea ETF) and DRAM (Memory ETF).
Current Holdings: The whale still holds long positions in MU (Micron Technology) and SNDK (SanDisk), with a total value of $12 million and an unrealized gain of $848,000.
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- Support from Employment Data: U.S. nonfarm payrolls for April increased by 115,000, surpassing expectations of 65,000, with March figures revised up to 185,000, indicating resilience in the labor market and further boosting stock prices.
- Decline in Consumer Confidence: The University of Michigan's May consumer sentiment index fell to a record low of 48.2, below the expected 49.5, highlighting economic uncertainty that could impact future consumer spending.
- Oil Market Volatility: Iran's seizure of an oil tanker in the Strait of Hormuz led to a rise in WTI crude prices, with expectations that this incident will affect global oil supply, potentially causing further price fluctuations.
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- CPU Demand Revival: AMD anticipates a 35% growth in the server CPU market over the next three to five years, significantly up from the previous forecast of 18%, reflecting the robust recovery in overall market demand driven by AI agents, which could reshape the industry landscape.
- Intel's Resurgence: Intel's stock achieved its best monthly performance in April, rising 33% in early May, bolstered by a partnership agreement with Apple, showcasing its revival potential in the CPU market and a return of market confidence.
- Optical Technology Partnership: Corning signed a $3.2 billion deal with Nvidia to establish three new factories in the U.S. focused on optical technologies, marking a significant step in Nvidia's transition towards fiber-optic cables, which could reshape the landscape of American manufacturing.
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US Stocks Rise, Nasdaq Hits Record High
- Strong Employment Data: US nonfarm payrolls rose by 115,000 in April, exceeding expectations of 65,000, while March figures were revised up to 185,000, indicating labor market resilience that supports stock market gains.
- Declining Consumer Confidence: Despite rising stock prices, the University of Michigan's May consumer sentiment index fell by 1.6 to a record low of 48.2, reflecting consumer concerns about the economic outlook, which could negatively impact future spending.
- Chip Stocks Lead Gains: Chipmakers like Micron and Qualcomm saw stock prices rise over 8%, driving the overall market higher, demonstrating the strong performance of tech stocks in the current market environment, although weakness in software stocks limited gains in the Dow.
- Oil Price Volatility Impact: WTI crude prices edged up slightly due to Iran seizing an oil tanker in the Strait of Hormuz, complicating market expectations for future oil prices, which may influence investment decisions in related sectors.
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U.S. Stocks Rise, Nasdaq Hits Record High
- Nasdaq Hits Record High: The Nasdaq 100 index surged 1.32% to reach a new record high, primarily driven by chipmakers and AI infrastructure stocks, indicating strong market confidence in technology stocks that may attract further investor interest in the tech sector.
- Strong Employment Data: U.S. nonfarm payrolls rose by 115,000 in April, exceeding expectations of 65,000, while March figures were revised up to 185,000, demonstrating resilience in the labor market that could lead the Fed to maintain interest rates in upcoming policy meetings.
- Corporate Earnings Support Market: So far, 84% of the 425 S&P 500 companies have beaten earnings estimates, with Q1 earnings projected to climb 12% year-over-year, providing robust support for the stock market and reflecting the potential for economic recovery.
- Geopolitical Impact on Oil Prices: Iran's seizure of an oil tanker in the Strait of Hormuz has led to a slight increase in WTI crude oil prices, heightening concerns over future oil price volatility and potentially affecting the stability of global energy supply chains.
See More
Sandisk Faces Warning of Demand Decline
- Demand Decline Warning: Bernstein's latest report indicates that while Sandisk is performing well this quarter, high prices are depressing memory demand, forcing OEMs and module houses to reduce purchases, which could impact future sales.
- Price Forecast Changes: Bernstein predicts that NAND and DRAM prices will see a significant increase in Q2 2026, but may notably decelerate in Q3, suggesting potential challenges for Sandisk's Q1 2027.
- Financial Outlook: Sandisk's latest earnings report projects Q4 sales of $8 billion, rising gross margins, and profits between $30 and $33 per share, which should remain stable if Bernstein's predictions hold true.
- Investor Confidence Shaken: Despite Sandisk's stock soaring 3,756% over the past year, analysts' concerns about its future performance have led investors to reassess its value, especially since Sandisk was not included in Motley Fool's list of top recommended stocks.
See More
A Major Investor Invests $12 Million in the Storage Memory Sector.
Whale Investment: The whale "0x3Ed" added $2.668 million USD to HyperLiquid and opened a 20x leveraged long position on the EWY (iShares MSCI South Korea ETF) and DRAM (Memory ETF).
Current Holdings: The whale still holds long positions in MU (Micron Technology) and SNDK (SanDisk), with a total value of $12 million and an unrealized gain of $848,000.
See More
U.S. Stocks Close Higher, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 rose by 0.84% and the Nasdaq 100 increased by 2.35%, reaching record highs, reflecting market optimism driven by robust corporate earnings despite concerns over the Iran conflict.
- Support from Employment Data: U.S. nonfarm payrolls for April increased by 115,000, surpassing expectations of 65,000, with March figures revised up to 185,000, indicating resilience in the labor market and further boosting stock prices.
- Decline in Consumer Confidence: The University of Michigan's May consumer sentiment index fell to a record low of 48.2, below the expected 49.5, highlighting economic uncertainty that could impact future consumer spending.
- Oil Market Volatility: Iran's seizure of an oil tanker in the Strait of Hormuz led to a rise in WTI crude prices, with expectations that this incident will affect global oil supply, potentially causing further price fluctuations.
See More
Transformations in Semiconductor Market Amid AI Surge
- Memory Market Surge: Micron's market capitalization surpassed $800 billion for the first time, with stock prices soaring over 750% in the past year, indicating a strong trend driven by global memory shortages that is likely to continue attracting investor interest.
- CPU Demand Revival: AMD anticipates a 35% growth in the server CPU market over the next three to five years, significantly up from the previous forecast of 18%, reflecting the robust recovery in overall market demand driven by AI agents, which could reshape the industry landscape.
- Intel's Resurgence: Intel's stock achieved its best monthly performance in April, rising 33% in early May, bolstered by a partnership agreement with Apple, showcasing its revival potential in the CPU market and a return of market confidence.
- Optical Technology Partnership: Corning signed a $3.2 billion deal with Nvidia to establish three new factories in the U.S. focused on optical technologies, marking a significant step in Nvidia's transition towards fiber-optic cables, which could reshape the landscape of American manufacturing.
See More
US Stocks Rise, Nasdaq Hits Record High
- Strong Employment Data: US nonfarm payrolls rose by 115,000 in April, exceeding expectations of 65,000, while March figures were revised up to 185,000, indicating labor market resilience that supports stock market gains.
- Declining Consumer Confidence: Despite rising stock prices, the University of Michigan's May consumer sentiment index fell by 1.6 to a record low of 48.2, reflecting consumer concerns about the economic outlook, which could negatively impact future spending.
- Chip Stocks Lead Gains: Chipmakers like Micron and Qualcomm saw stock prices rise over 8%, driving the overall market higher, demonstrating the strong performance of tech stocks in the current market environment, although weakness in software stocks limited gains in the Dow.
- Oil Price Volatility Impact: WTI crude prices edged up slightly due to Iran seizing an oil tanker in the Strait of Hormuz, complicating market expectations for future oil prices, which may influence investment decisions in related sectors.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Nasdaq Hits Record High: The Nasdaq 100 index surged 1.32% to reach a new record high, primarily driven by chipmakers and AI infrastructure stocks, indicating strong market confidence in technology stocks that may attract further investor interest in the tech sector.
- Strong Employment Data: U.S. nonfarm payrolls rose by 115,000 in April, exceeding expectations of 65,000, while March figures were revised up to 185,000, demonstrating resilience in the labor market that could lead the Fed to maintain interest rates in upcoming policy meetings.
- Corporate Earnings Support Market: So far, 84% of the 425 S&P 500 companies have beaten earnings estimates, with Q1 earnings projected to climb 12% year-over-year, providing robust support for the stock market and reflecting the potential for economic recovery.
- Geopolitical Impact on Oil Prices: Iran's seizure of an oil tanker in the Strait of Hormuz has led to a slight increase in WTI crude oil prices, heightening concerns over future oil price volatility and potentially affecting the stability of global energy supply chains.
See More
