Sandisk: The NAND Supercycle Makes This A Strong Buy

Dhierin Bechai Investing Group Leader Follow Summary Sandisk Corporation is initiated with a Buy rating and a $2,160 price target, driven by explosive revenue growth and exceptional margin expansion post-spin from Western Digital. Fiscal 2026 saw revenue nearly triple and non-GAAP gross margin reach 84.6%, with AI infrastructure and datacenter demand fueling pricing power and profitability. New multiyear business model agreements now cover over half of bits shipped, securing minimum pricing, reducing cyclicality, and enhancing earnings visibility. Capital returns are robust, with aggressive share repurchases and a net cash balance, but risks remain from NAND supply responses, Kioxia dependence, and potential margin normalization. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » alacatr/iStock Unreleased via Getty Images This is my first report on Sandisk Corporation ( SNDK ), the NAND flash memory business that became independent from Western Digital in February 2025. Sandisk enters my coverage after a remarkable fiscal 2026: revenue nearly tripled, the This article was written by Dhierin Bechai 24.7K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU, SNDK, KXIAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.