SanDisk, 10.8% surge after stock price nearly halved..."SK Hynix alliance saved it"

▲ SanDisk (SNDK)/AI generated image

SanDisk (SNDK) surged by 10.84% after plummeting by 47% over a month. The next-generation artificial intelligence (AI) memory standard unveiled with SK Hynix ignited the counterattack.

According to BeInCrypto on August 5 (local time), SanDisk's stock price surged by 10.84% the previous day. Expectations for the AI memory business grew as SanDisk and SK Hynix unveiled the first industry-standard specification for High Bandwidth Flash (HBF).

The specification unveiled by the Open Compute Project (OCP) provides a common standard for applying HBF to AI accelerator designs. HBF aims to bridge the gap between High Bandwidth Memory (HBM), which is fast but has limited storage capacity, and Solid State Drives (SSDs), which have large capacities but are slow.

The new standard supports up to 512GB of NAND flash stacking per die stack. Performance is divided into three levels, with read speeds reaching up to 3TB per second. SanDisk and SK Hynix launched the HBF consortium in February, and Google (GOOGL) and Tenstorrent joined during the specification development process.

Alper Ilkbahar, SanDisk's Chief Technology Officer, hailed the specification's unveiling as “an important milestone for the HBF ecosystem.” SanDisk will also deliver a keynote speech on AI memory at the Future of Memory and Storage (FMS) conference today.

SanDisk will announce its fiscal fourth-quarter earnings after market close today. Wall Street expects earnings per share of $33 and revenue of $8.3 billion. Earnings per share in the same period last year were $0.29. The stock fell in pre-market trading on Wednesday ahead of the earnings release, giving back some of the previous day's gains.

[Key Article Summary]

-SanDisk's stock price surged by 10.84% after unveiling next-generation AI memory specifications with SK Hynix.

-The new HBF standard supports up to 512GB per die stack and read speeds of up to 3TB per second.

-SanDisk's fiscal fourth-quarter earnings outlook is $33 EPS and $8.3 billion in revenue.

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