5× in 2 Months! How to Understand NAND Rally? What Stocks to Watch?
In the past two months, one stock has surged fivefold.
You might think it’s just another meme stock, but it’s actually part of the AI-driven rally that the market has underestimated — NAND Flash memory stock $SanDisk Corp.(SNDK)$ !
The AI boom has triggered a surge in NAND flash demand, while at the same time, supply constraints have worsened the imbalance between supply and demand.
Why has NAND Flash memory sector been undervalued?
Research reports point out that as the AI wave sweeps across the globe, the shortage of memory chips is becoming more severe.
Over the past two years (2022–2023), NAND prices plunged, leading manufacturers to cut production and destock. By Q4 2024, the industry hit inventory bottom, manufacturing costs declined (thanks to process node improvements), and the market entered a phase of price recovery + profit margin expansion.
As Samsung, SK Hynix, and Micron shifted capital expenditure toward high-end memory products like HBM (High Bandwidth Memory), the supply gap in traditional memory is expected to persist at least through next year.
Will the supply-demand imbalance last into next year?
SanDisk Raises Prices Three Times! Igniting the Storage Price Hike Wave!
In November, SanDisk sharply increased NAND flash contract prices by up to 50%, marking its third price hike this year.
After raising prices by 10% in April and again by 10% in September across all channels and consumer products, SanDisk’s latest move triggered price-following from peers such as Micron and other storage leaders.
Strong Earnings Last Week! Multiple Institutions Lift Target Price to $300
Goldman Sachs raised SanDisk’s target price to $280, boosting its EPS forecast by over 80%.
Bernstein was even more bullish, hiking their targets to $300, believing the strong pricing momentum could last through Q3 2026.
Last week, SanDisk reported fiscal Q1 2026 earnings with revenue, margins, and EPS all beating expectations, and provided a stronger-than-expected Q2 outlook.
Bernstein attributed the stellar results to robust demand, declining inventories, and higher sales volumes, while stronger pricing power further fueled growth.
Goldman raised its FY2025–2027 EPS estimates by 69.2%, 83.6%, and 85%, respectively, lifting the 12-month target price from $140 to $280.
Meanwhile, Jefferies and Mizuho Securities also raised their targets, citing a favorable pricing environment and rising AI server demand.
What NAND flash stocks to watch?
Beyond SanDisk, peers like $Micron Technology(MU)$ , $Western Digital(WDC)$ , and $Seagate Technology PLC(STX)$ have also posted impressive gains this year.
Some argue that despite the rally, the storage sector remains undervalued. Even after a 600% surge this year, SanDisk’s forward P/E is just 27x, compared to Nvidia’s 44x.
Discussion
Do you think the storage sector still has room to run?
Or has the rally gone too far, and it’s time to take profits?
With major institutions raising target prices, is this a signal to add positions — or start exiting?
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Although valuations have risen, fundamentals remain solid. SanDisk’s multiple price hikes and improving margins reflect real pricing power, and even after a massive rally, its valuation still lags Nvidia’s. That suggests the market hasn’t fully priced in its long-term AI-driven growth potential.
For now, I prefer to stay invested rather than take profits. The memory upcycle is far from over, and I’d consider adding on dips as AI infrastructure expansion continues to fuel demand through 2026.
$Micron Technology(MU)$ $Western Digital(WDC)$ $Seagate Technology PLC(STX)$
@Tiger_comments @TigerStars
AI models require massive data storage for training and inference. NAND flash offers high density, cost efficient storage for this purpose.
Data centers are also shifting from hard disk drives to NAND based SSDs to meet AI latency and throughput demands.
Another reason why NAND is surging is the semiconductor supercycle.
Stocks poised to benefit are $SanDisk Corp.(SNDK)$ $SK Hynix, Inc.(HXSCL)$ $Western Digital(WDC)$.
Exciting times are ahead for these stocks so it is worthwhile considering adding them to my watch list as there is lots of exponential growth ahead.
@Tiger_comments @TigerStars @TigerClub @CaptainTiger
Check them in the history - “community distribution“
While SanDisk Corp (SNDK), Micron Technology (MU) and Western Digital (WDC) are strong players in the sector, their current prices are relatively high, so it may be wise to monitor their movements before considering an entry
If the rally is overextended, holding may still be worthwhile for those believing in long-term growth, while those concerned about high valuations or new to the sector might consider locking in profits and waiting for a pullback
In summary, the NAND rally, fueled by strong demand and supply constraints, has solid long-term prospects, but the rapid price increase suggests reassessing positions, with earnings reports and market sentiment guiding the next steps。。。
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@Huat99
@Snowwhite
我個人認爲，AI服務器需求的持續增長是這次行情的核心驅動力。生成式AI模型的訓練和推理，不僅依賴高算力，也對數據存儲和訪問速度提出了極高要求。隨着三星、海力士、美光紛紛將重心轉向高帶寬內存（HBM），NAND產能反而被壓縮，這種“被動減產”讓SanDisk在需求回升時擁有了更強的定價權。連續三次漲價、合同價暴漲50%，足以說明供需緊張的現實。
從估值角度看，即使閃迪股價已飆升600%，其預期市盈率仍低於英偉達等AI龍頭，這說明市場對存儲股的重新定價纔剛開始。機構上調目標價到300美元，反映出資金對行業週期反轉的信心。
但我不會盲目追高。短線漲幅過快，技術面隨時可能出現調整。若有回調，我反而會視爲加倉機會。整體來看，存儲板塊確實還有運行空間，但節奏要掌握好——這不是泡沫，而是一場被低估已久的AI“存儲革命”剛剛開始。
1. Storage prices are forecast to increase further
2. Outlook remains strongly positive
3. Signal to add to positions of momentum trading .
Sandisk is an opportunity to invest further in ai
NAND isn't just for AI purpose, but the AI hype will fuel strong demand, such that the fastest supplier will "win" the biggest slice, but there should be enough for everyone.
The rally will continue and unless people already bought in before this climb, most will be looking to enter and stay around for a while longer.
Longer term investors who have positions for some time now should cash out earlier though, not ride it all the way to the crash.
在4月份將所有渠道和消費產品的價格提高了10%，並在9月份再次提高了10%之後，SanDisk的最新舉措引發了美光和其他存儲領導者等同行的價格跟隨。
过去两年（2022-2023年），NAND价格暴跌，导致制造商减产和去库存。到2024年Q4，行业触及库存底部，制造成本下降（得益于工艺节点改善），市场进入价格修复+利润率扩张阶段。
随着三星、SK海力士和美光将资本支出转向HBM（高带宽内存）等高端内存产品，预计传统内存的供应缺口将至少持续到明年。