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
我个人认为，AI服务器需求的持续增长是这次行情的核心驱动力。生成式AI模型的训练和推理，不仅依赖高算力，也对数据存储和访问速度提出了极高要求。随着三星、海力士、美光纷纷将重心转向高带宽内存（HBM），NAND产能反而被压缩，这种“被动减产”让SanDisk在需求回升时拥有了更强的定价权。连续三次涨价、合同价暴涨50%，足以说明供需紧张的现实。
从估值角度看，即使闪迪股价已飙升600%，其预期市盈率仍低于英伟达等AI龙头，这说明市场对存储股的重新定价才刚开始。机构上调目标价到300美元，反映出资金对行业周期反转的信心。
但我不会盲目追高。短线涨幅过快，技术面随时可能出现调整。若有回调，我反而会视为加仓机会。整体来看，存储板块确实还有运行空间，但节奏要掌握好——这不是泡沫，而是一场被低估已久的AI“存储革命”刚刚开始。
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。
過去兩年（2022-2023年），NAND價格暴跌，導致製造商減產和去庫存。到2024年Q4，行業觸及庫存底部，製造成本下降（得益於工藝節點改善），市場進入價格修復+利潤率擴張階段。
隨着三星、SK海力士和美光將資本支出轉向HBM（高帶寬內存）等高端內存產品，預計傳統內存的供應缺口將至少持續到明年。