SanDisk Corporation (NASDAQ:SNDK) is set to present at the Bernstein Insights: What’s Next in Tech? 4th Annual TMT Forum today at 6:30 p.m. ET.
In advance of the event, KC Rajkumar, an analyst at Lynx Equity Strategies, outlined his expectations and key themes he believes will be addressed during the company’s investor presentation.
Supply outlook
Rajkumar indicated that the current supply shortfall in the NAND flash market is likely to be more prolonged than the DRAM shortage. He expects that significant DRAM capacity will come online by the second half of 2027, while buyers of NAND flash may need to wait until 2028 before capacity eases.
The analyst emphasized that the supply-demand imbalance for NAND is not likely to vanish in the foreseeable future. He therefore anticipates that SanDisk’s CEO and CFO will discuss the shortage during today’s presentation and deliver updates on ongoing negotiations with Tier1 cloud service providers regarding multi-year, non-cancellable supply agreements.
Contracts and cycle dynamics
Rajkumar raised a question about the historical frequency of long-duration supply contracts in the NAND industry, noting that NAND vendors have not, in his view, entered into supply agreements longer than a quarter in recent memory. He said this shift toward longer contracts alters the market dynamic and characterizes the current cycle as unlike prior ones.
Financial outlook
Citing SanDisk management comments from the company’s earnings call, Rajkumar expressed confidence that earnings per share for 2026 could fall in the $90 to $100 range. The analyst also stated that he views price pullbacks in the stock as buying opportunities.
Investor tools referenced
The discussion included a reference to ProPicks AI, which evaluates SNDK alongside many other companies each month using over 100 financial metrics. The tool is described as applying AI to identify stocks with attractive risk-reward profiles based on current data, and the original reference noted past identified winners such as Super Micro Computer and AppLovin. The note indicated ProPicks can show whether SNDK is currently featured in any strategies or if alternative opportunities exist in the same sector.
Takeaway
Investors tuning into SanDisk’s presentation should expect management commentary on the persistent NAND shortage and progress in securing longer-term supply commitments from major cloud customers, while keeping an eye on the company’s forward EPS guidance as discussed by the analyst.