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Stock impact report

Sandisk: The Street Still Needs To Catch Up [Seeking Alpha]

Sandisk Corporation (SNDK) 
Company Research Source: Seeking Alpha
Q3 guidance calls for $4.4–$4.8B in revenue and $12–$14 EPS, driven primarily by a hike in memory ASPs. This hike was seen across all segments, not just the data center. Gross margin jumped to 51.1% from 29.9% in Q1. On top of that, the Q3 guide implies 64.9%–66.9%. In other words, management sees no memory ASP digestion phase yet. In my view, the main risk in the near term is beta. Overall, I don't expect ASPs to stabilize until early next year. Overall, the valuation makes sense, and Sandisk is seen as a picks-and-shovels company in the AI data center buildout. I think the ATHs are not behind us, and I reiterate my cautious buy rating. Getty Images Heading into the Q2 print, I was cautiously bullish on Sandisk Corporation ( SNDK ), citing a crowded trade. Here is what I said would be the most important item to monitor: Given that shares doubled since Q1 results, the This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative po Show less Read more
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