Summary

• Sandisk Corp. is downgraded to neutral as NAND flash spot prices begin to normalize after a massive rally.
• Sandisk's explosive share gains and revenue growth have been driven by surging NAND prices and AI inference demand.
• With management maintaining mid- to high-teens bit shipment growth, Sandisk's outlook now hinges on NAND price direction, which has stopped its exponential ascent.
• I expect near-term volatility and recommend waiting for a significant pullback before considering new positions in Sandisk.

Investment Thesis

Flash memory maker Sandisk Corp. (SNDK) has rallied ~2600% over the past 12 months and ~275% since the year began.

Revenues are already up 23% to $8.9B, while midpoint sell-side projections estimate Sandisk will eventually

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