Overview
- Shares jumped sharply on Thursday after Apple CEO Tim Cook said rising memory costs make product price increases unavoidable, which markets read as confirmation of a deep NAND supply squeeze.
- SanDisk reported a blowout quarter with about $5.95 billion in revenue, roughly 78.4% gross margin, and data center sales that surged more than 200%, giving the company unusually clear near‑term revenue visibility.
- Management says 2026 production is fully allocated and bookings for 2027 are strong, with roughly $41.6 billion in remaining contractual obligations and multiyear deals that cover a material portion of output.
- Wall Street has raised price targets broadly this month, but the stock trades at elevated multiples and technical indicators show extreme overbought readings, creating a risk of a sharp pullback if supply or demand shifts.
- A planned Western Digital share‑swap on June 22 and upcoming earnings and NAND pricing data are the key near‑term tests that could reset expectations for SanDisk’s margins, customer pricing and investor returns.