Sandisk inventory (SNDK) closed Monday at $952.50, up 11.83%, after SanDisk Corp confirmed it’ll be part of the Nasdaq-100 on April 20, changing Atlassian. The soar additionally pushed SanDisk shares to a recent 52-week excessive of $953.41 and lifted the market cap to roughly $140.59 billion. Sturdy AI-driven demand for NAND storage, and likewise a stack of upcoming catalysts together with an earnings launch on April 30, are proper now fueling the rally throughout reminiscence shares.
Sandisk Inventory Surge Pushed By Nasdaq-100 Inclusion And AI Demand
What the Nasdaq-100 Entry Means for Sandisk Inventory
As soon as Sandisk inventory enters the Nasdaq-100, each index-tracking ETF and mutual fund has to purchase it earlier than the efficient date. Fund managers merely don’t get to debate the addition as soon as it goes official, and that pressured institutional shopping for has been driving pre-rebalance positioning all week. SanDisk Corp is changing Atlassian, whose shares fell greater than 62% year-to-date.
Yahoo Finance anchor Josh Lipton said:
“SanDisk will exchange Atlassian Company. This may go into impact previous to the market open on Monday, April twentieth.”
Jefferies raised its value goal on SNDK to $1,000 proper after the announcement, pointing to continued pricing power within the NAND market and likewise ongoing AI-driven demand, and to anticipated QLC eSSD shipments to Tier 1 knowledge middle prospects forward of the April 30 earnings name. Citi analyst Asiya Service provider additionally raised her value goal to $980 and saved a Purchase score on the shares.
NAND Provide and AI Demand Pushing Reminiscence Shares Greater
SanDisk is the one pure-play NAND firm among the many main reminiscence shares proper now, holding a few 13% share of the worldwide NAND market. Rivals like SK Hynix and Micron maintain prioritizing Excessive Bandwidth Reminiscence manufacturing, and that call tightens NAND provide and likewise fingers Sandisk inventory a direct benefit. The corporate’s datacenter section posted income of $440 million final quarter, up 76% 12 months over 12 months and likewise 64% sequentially.
SanDisk CFO Luis Visoso had this to say:
“We imagine that the NAND market goes by means of structural evolution catalyzed by AI. The evolution is extra pronounced in knowledge facilities, the place knowledge progress is accelerating because the temperature of knowledge is rising, token depth is accelerating, and storage is a crucial enabler for inference.”
The Valuation Debate Round Sandisk Inventory Nasdaq
Not all analysts share the bullish view on Sandisk inventory associated to Nasdaq, although. In search of Alpha contributor David B. McMillan revealed a Promote score on April 13, putting a base-case truthful worth at $569 per share, properly under the place SNDK was buying and selling on the time of writing. He argues that the reminiscence sector stays essentially cyclical, and that traders value SanDisk shares as a secular progress story when the underlying product stays a commodity.
McMillan said:
“Present share value is pushed by short-term sentiment and FOMO, not sustainable fundamentals.”
New NAND fab capability doesn’t arrive till round 2028, and that timeline retains the near-term setup for Sandisk inventory trying robust. Nonetheless, McMillan’s level holds: the market already is aware of in regards to the provide squeeze and likewise seems to have priced that data properly above his $569 base case.
