SanDisk's data-center flash growth shows AI inference is becoming a larger storage customer. Data-center revenue reached $4.8bn, up 61% in a quarter and over 40% of sales; total revenue of $11bn and EPS of $49.51 beat expectations. Guidance of $12.4bn revenue and $56 EPS suggests feared supply normalization has not yet eroded pricing. Overweight, with a $2,700 target. x.com  x.com 

Sandisk could be the memory supercycle's biggest winner because long-term NAND contracts may make earnings more durable than in past cycles. About $93.9 billion of floor-priced deals cover half of expected FY27 bit shipments and two-thirds in FY28 amid rising AI storage demand. Floors do not guarantee margins; management's roughly 50% adjusted free cash flow margin target for FY28-30 is not reported cash flow. Profitable contracts and sustainable cash generation could support a higher multiple. … Show more

Sandisk's datacenter shipments and restrained bit-supply plan strengthen its growth case, without settling contract protection in a downturn. Management attributed roughly 60% of fiscal Q1 revenue growth to volume and 40% to price; datacenter sales rose 61% sequentially to $4.8B, supplying 88% of total growth. It retains mid-to-high-teens bit growth rather than accelerating supply. Consumer sales fell 29%, and the CFO cautioned against carrying Q2's growth rate into fiscal Q3. x.com  x.com 

Sandisk's earnings growth makes its valuation look unusually low, with guidance showing no slowdown. Revenue rose 378% year over year, and $52.5 GAAP EPS implies a 6.1 annualized P/E, below Micron's. Sandisk's roughly 85% gross margin also compares favorably with SK hynix's apparently sub-50% NAND margin. Next-quarter guidance calls for $12.2 billion-$12.6 billion of revenue and $55-$57 non-GAAP EPS. x.com  x.com  x.com 

Sandisk's earnings power looks underpriced because AI keeps NAND demand ahead of supply while long-term contracts lock in profits. AI needs enormous high-throughput storage, and new cleanroom capacity is slow to ramp, supporting margins; per Wall Street analysts, multi-year supply deals undercut the cyclical narrative. Q3 revenue rose over 250% to $5.95 billion, and its forward P/E keeps compressing. Evercore ISI raised its target to $3,100 and Bernstein to $3,000. August 5 results are the test. … Show more

SanDisk's gross-margin plateau is bad for the stock, because memory stocks trade on pricing and gross-margin trajectory. @jukan05 calls the plateau a welcome sign of disciplined, long-term management and argues investors should now watch volume rather than price, noting bears see it as the cycle peak; that view is wrong for the shares. x.com 

Sandisk's fast-growing data-center revenue strengthens its case among memory names with upside. Data-center revenue rose 61% quarter over quarter; revenue of $11.03B, adjusted EPS of $49.51 and adjusted gross margin of 85.1% all exceeded estimates. For upside among Micron, Sandisk and Kioxia, Micron ranks first, then Sandisk, then Kioxia, until further guidance. x.com  x.com 

Sandisk looks like an obvious buy at about 11x forward free cash flow because AI is creating ever-growing demand for both compute and storage. The memory boom is not going away soon, and there is no need to know exactly when the cycle slows, only that underlying demand remains incredibly strong. The biggest risk is looking back and wondering why it was not bought. x.com 

Sandisk's growth is coming entirely from higher prices, not more bits shipped, which makes it hard to sustain. Revenue grew 97% quarter over quarter as almost every hyperscaler raised capex to cover rising prices. Its roughly 80% gross margin is excessive and customers resent it; as long as demand far exceeds supply it can keep both, but supply eventually catches up and margins will erode. The open questions are how long new fabs take and whether Sandisk or rivals add the supply. x.com  x.com  … Show more

SanDisk is turning storage into something like a utility, which the market is far from pricing. Per a Citi TMT conference summary, its long-term agreements fix time, volume, price and financial guarantees, trading some upside for locked-in results, with gross margin near 80% even at floor prices. They cover half of shipments, heading to two-thirds by 2028. AI agents need huge KV caches as context grows from 32K to 1M, so NAND demand grows exponentially, not as a cyclical rebound. x.com