Analyst sees "unprecedented" NAND cycle ahead of SanDisk presentation

Investing.com -- SanDisk Corporation (NASDAQ: SNDK) is scheduled to participate in the Bernstein Insights: What’s Next in Tech? 4th Annual TMT Forum today at 6:30 p.m. ET.

Ahead of the presentation, Lynx Equity Strategies analyst KC Rajkumar shared his expectations for the event. Rajkumar noted that the supply shortage in the NAND flash space is likely to last longer than the DRAM shortage. While meaningful DRAM capacity is expected to come online by the second half of 2027, buyers of NAND flash may need to wait until 2028.

The analyst stated that the supply-demand shortage in the NAND flash space is not likely to disappear in the foreseeable future. At today’s investor presentation, Rajkumar expects SanDisk’s CEO and CFO to discuss the supply shortage and provide an update on ongoing negotiations with Tier1 cloud service providers regarding multi-year non-cancellable supply agreements.

Rajkumar questioned when NAND vendors last entered into supply contracts lasting more than a quarter, suggesting it has not occurred in recent memory. He said this changes the dynamic and that this cycle is unlike previous cycles.

Based on SanDisk management comments at the earnings call, Rajkumar said he has confidence that 2026 earnings per share can be in the $90 to $100 range. The analyst views pullbacks as buying opportunities.

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