Sandisk Corporation (SNDK · NASDAQ)
The Memory Chips Behind Every AI Answer
Sandisk makes the flash memory chips that store data inside phones, laptops, memory cards and the vast server farms now running artificial intelligence.
Bull case for Sandisk Corporation
Multi-year contracts replace quarterly price haggling
Long supply deals with eight big customers give Sandisk years of committed demand visibility.
AI data centres now a third of output
Chips sold into AI server farms have gone from a sliver to a major share of production.
Growth comes from smaller chips, not new factories
Squeezing more storage onto each wafer lifts supply without the cost of building plants.
Bear case for Sandisk Corporation
Memory chip prices swing violently
NAND has a long history of booms followed by brutal price crashes that erase profits.
Factories are shared with a partner
Sandisk owns under half of the joint venture that actually makes its wafers in Japan.
A handful of customers dominate demand
Eight contracted customers will cover most output, so losing one would hurt badly.