Sandisk Corp (SNDK)

He trades memory stocks, currently a small position and may add a little on this pullback. Sandisk is a good name, but these stocks are getting crazy valuations. This name could return to highs. Maybe. He wouldn't invest in memory now, but prefers software.

Is up 3,000% the past 12 months but trades at only 20x 2026's PE. Still, it's too expensive compared to Micro. This has to fall even more.

Up 167% in Q1 and the best performer on the S&P, thanks to the data centre-induced shortage in memory. The easy money has already been made.

Memory/storage is one of the hottest sectors. The best performer Sandisk gained 143%, Seagate 48%, Micron 45% and Western Digital 45%, because of surging demand from data centres, driven by AI. Last week, Sandisk reported a blow-out quarter and raised guidance this year. Could me more upside.

SNDK is in a similar position to MU. Still a lot of upside because there's still a lot of upside to the numbers in the short term. Be mindful that it's very cyclical.

As to adding new $$, she'd look at the semiconductor equipment stocks instead for upside without taking on too much risk.

It reports Thursday. He predicts the market will say, Wow, and keep buying, but SNDK is way overbought.

Even with a 70% (!) YTD gain, memory is proving to be crucical for AI and most companies have sold out production for some time. SNDK still is only at 30X earnings and we think it remains buyable, considering EPS is expected to more than double this year.
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SNDK is a $57B developer and manufacturer of data storage devices and solutions based on NAND flash memory tech. The large increase in share price has been driven by surging demand for NAND flash and SSD storage tied to AI infrastructure. It is expected that NAND flash memory prices could rise materially, and this would improve SNDK's margins. Margins are growing, sales growth is decent, and analysts expect strong sales growth in the next couple of years. It trades at a reasonable valuation of 22X forward earnings, but memory chips are cyclical, and if supply begins to ramp up quickly, its expected growth could diminish. We think it looks interesting, but we would be cautious on position sizing.
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 It reports Thursday. Has had a parabolic move, so he won't touch it.

Ranks in the top quarter of his database. Near-term earnings have been huge and are expected to be up significantly in the coming quarter. PE at 12X is interesting. Hopefully they use their cash to buy back stock or do some interesting things. Cash per share is significant at roughly $4.40. Looks like earnings growth is going to slow dramatically in 2014.