SerpApi.Org
Key Points
SK Hynix notes that tight memory supply will continue into the next decade.
This is great news for Sandisk, which has been clocking exponential revenue and earnings growth due to overwhelming memory demand.
Sandisk looks like a potential multibagger due to its strong earnings growth potential and cheap valuation.
SK Hynix is one of the most important memory manufacturers in the world. It enjoys a healthy market share in the dynamic random-access memory (DRAM) and NAND flash markets, which is why the CEO's latest comments suggest the memory supercycle is here to stay.
The South Korean bellwether's CEO, Kwak Noh-Jung, recently told Reuters in an interview that he expects the memory shortage to worsen in 2027. What's more, he added that memory demand will continue to outstrip supply beyond 2030, despite the company's efforts to aggressively add capacity. All this bodes well for Sandisk (NASDAQ: SNDK), one of the hottest names in the memory industry that has made investors significantly richer over the past year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Sandisk is going to release its fiscal 2026 fourth-quarter results on Aug. 5. SK Hynix's comments about the state of the memory industry suggest that Sandisk could go on a parabolic run after its upcoming report. Let's see why.
Sandisk's numbers and guidance could crush consensus expectations
Sandisk is a pure-play NAND flash storage company. It controls 13% of this market, according to Counterpoint Research. SK Hynix is bigger than Sandisk in NAND flash with an 18% market share. So, when SK Hynix notes that the memory shortage is set to worsen in 2027, one can assume that the massive price hikes powering Sandisk's growth are here to stay.
The NAND flash industry's revenue increased 3.5x year over year in Q1 to $46 billion. Analysts are anticipating Sandisk's fiscal Q4 revenue to increase by 338% year over year to $8.34 billion. The bottom-line jump will be even more impressive at a whopping 117x to $34.15 per share. If SK Hynix's forecast about the memory supply situation getting worse turns into reality, then there is a solid chance of Sandisk's numbers exceeding expectations.
After all, the consensus earnings estimate for fiscal Q4 isn't very far from the higher end of Sandisk's earnings per share guidance of $33.00. The company has been striking long-term agreements with customers that include a variable pricing option, which will allow it to capture potential price increments in NAND flash. This should pave the way for stronger-than-expected guidance, given SK Hynix's forecast that the supply situation will tighten.
The stock still has multibagger potential
This semiconductor stock has turned a $1,000 investment into $33,000 over the past year. You may be wondering if it can deliver more upside following such stunning gains.
Given that Sandisk is trading at just 21 times forward earnings and is expected to clock a 220% increase in earnings per share in fiscal 2027 to $212.60, it can indeed fly higher. Sandisk can easily achieve such terrific earnings growth in the current fiscal year since NAND flash demand will continue to overwhelm supply.
This AI stock could easily trade above $4,000 even if it trades at 20 times earnings after a year, based on its earnings-per-share estimate for the fiscal year that has just begun. That's nearly triple Sandisk's current stock price, which means that it isn't too late for investors to buy this AI stock.
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sandisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 22, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
