Overview
- SanDisk reported a blowout quarter with $5.95 billion in revenue and a 78.4% gross margin, driven by AI data-center sales and unusually high SSD pricing.
- Apple CEO Tim Cook’s June 18 comment that device price increases are “unavoidable” because memory costs are unsustainable triggered a sharp one-day rally and reinforced market belief in a persistent NAND supply squeeze.
- The company says its full 2026 production is sold out and has roughly $41–$42 billion in remaining performance obligations from multiyear customer commitments that give near-term revenue visibility.
- Wall Street has raised price targets in June as analysts model much higher FY2027 revenue, but technical indicators (RSI readings above 99) and elevated trailing P/E multiples highlight short-term overbought conditions and vulnerability to a supply or demand reversal.
- The market move rests on a structural constraint—new fabrication capacity typically takes 18–24 months to come online—so continued tight supply could keep prices high and push device makers to raise consumer prices, and SanDisk’s June 22 share/swap with Western Digital is the next corporate milestone to watch.