Sandisk: $94B In Contracts Reinforces Outlook

Sandisk Corporation is rated a Buy, supported by multi-year contracts securing over 4 years of demand and robust free cash flow. SNDK’s new business model locks in minimum pricing and volume commitments, covering 50% of 2027 and two-thirds of 2028 chip sales. Despite a 665% YTD return, SNDK trades at a forward P/E of 8.07x, well below the sector median, with strong earnings and buyback momentum. Key SNDK risks include consumer segment weakness and customer concentration, but AI-driven demand and contract guarantees underpin the bullish outlook.

I recently published an article highlighting why the memory shortage will get worse through 2027. I referred to the Roundhill Memory ETF (DRAM) as the vehicle to get that exposure, but I