Sandisk Corporation (SNDK): A Bull Case Theory

We came across a bullish thesis on Sandisk Corporation on Trade At Your Own Risk’s Substack. In this article, we will summarize the bulls’ thesis on SNDK. Sandisk Corporation's share was trading at $70.51 as of September. SNDK’s forward P/E was 14.77 according to Yahoo Finance.

SanDisk Corporation (SNDK) has transformed from its legacy consumer-focused identity into a powerful player in enterprise solid-state drives (eSSDs) for AI data centers and high-performance storage applications. The company, spun off from Western Digital in February 2025, leverages strong brand equity and broad recognition among consumers, gamers, content creators, and professional users. SanDisk’s eSSDs are designed for demanding enterprise environments, providing high endurance, reliability, and performance to support AI, cloud, and large-scale data processing workloads. The company also benefits from its 25-year joint venture with Kioxia, a global leader in flash memory, which enhances 3D NAND production efficiency and cost optimization.

SanDisk operates in a rapidly expanding market, with high-bandwidth memory (HBM) alone projected to grow from $4 billion in 2023 to roughly $130 billion by 2033. The company maintains a solid cash position, manageable debt, and 8,200 active patents, positioning it to capitalize on AI, automotive storage, and next-generation enterprise applications. Gross margins have improved to around 30% in 2025, reversing a multi-year decline and highlighting operational resilience. Technically, the stock has recently broken out from a symmetrical triangle pattern near $52, close to its all-time high of $58, suggesting upside potential.

Valuation metrics indicate significant upside, with a conservative price-to-sales ratio of 0.94 implying a fair value near $55–$58, while book value per share of $63 suggests the stock remains undervalued relative to its assets and intellectual property. Risks include fierce competition from Micron, Samsung, SK Hynix, and Kingston, as well as supply chain exposure due to overseas manufacturing. A one-time $1.83 billion goodwill impairment post-spinoff impacted GAAP earnings but does not reflect operational weaknesses. Overall, SanDisk offers compelling long-term growth exposure in NAND, AI, and enterprise storage markets, with strong cash flows, undervalued stock metrics, and multiple catalysts for appreciation.

Previously we covered a bullish thesis on Super Micro Computer, Inc. (SMCI) by Taylor Nichols in March 2025, which highlighted the company’s rapid expansion in AI infrastructure, high-performance servers, and modular system designs supported by strategic Nvidia partnerships. The company's stock price has appreciated approximately by 25.27% since our coverage. The thesis still stands as SMCI’s technology leadership and market positioning remain strong. Trade At Your Own Risk shares a similar bullish perspective but emphasizes SanDisk’s transformation into a leading enterprise SSD provider, its joint venture with Kioxia, and growth opportunities in high-bandwidth memory and NAND storage markets.

Sandisk Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held SNDK at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the potential of SNDK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.