Is SanDisk (SNDK) Stock's 'Halving' an Opportunity?..."Memory Shortage is a Catalyst for Rebound"

▲ SanDisk (SNDK)/AI Generated Image

Expectations for a rebound have re-emerged for SanDisk (SNDK), whose stock price halved in just one month. Analysis suggests that if the memory supply shortage continues, a recovery to an all-time high is possible.

According to The Motley Fool on August 6 (local time), SanDisk's stock price has rebounded from its recent lows but is still about 50% lower than its all-time high. It was one of the hottest stocks in the first half of the year, but its price halved in a month. Motley Fool contributor Keithen Drury said, “Investors should take advantage of this sell-off.”

SanDisk produces NAND memory and SSDs for long-term data storage. In particular, there is strong demand for SSDs for data centers, which store the large-scale data required to run artificial intelligence (AI) models. NAND and SSDs are general-purpose commodities with little product differentiation. When a surge in demand and a supply shortage overlap, prices rise rapidly, and SanDisk is benefiting from the increase in memory prices.

Market caution is focused on the possibility of memory prices falling after demand peaks. Drury acknowledged the potential for a downturn but believed the market was reflecting the timing too early. Several indicators suggest that strong industry conditions could continue beyond 2027. This means there would be a boom lasting at least 18 months, providing ample time for SanDisk to surpass its all-time high.

Amazon (AMZN) raised its 2026 capital expenditure plan from $200 billion to $220 billion, reflecting rising memory prices. Wall Street expects SanDisk's revenue for the fiscal year ending June 30, 2027, to increase by 151%. Drury believes the memory boom will last longer than a typical cycle and suggested SanDisk as a buy for August.

However, SanDisk was not included in the 10 buy recommendations selected by The Motley Fool's Stock Advisor. Stock Advisor's average return was 956%, outperforming the S&P 500's 214%. Drury disclosed that he owns Amazon stock, and The Motley Fool also owns Amazon stock and recommends buying it.

[Article Key Summary]

-SanDisk's stock price has fallen by approximately 50% from its all-time high in just one month.

-Amidst memory supply shortages and rising prices, there are forecasts that strong industry conditions could continue beyond 2027.

-Wall Street expects SanDisk's revenue for the fiscal year 2027 to increase by 151%.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*