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- Why SandiskStock Keeps Going Down
Sandisk (Nasdaq: SNDK) shares kept falling, with a 4.6% drop on Wednesday as of 2:35 p.m. ET, leaving them down 11% for the week and approaching a 20% loss for the month. The sell-off followed news that China's CXMT is making “key progress” on “4F square” DRAM technology and plans to introduce products for the high bandwidth memory (HBM) market for AI data centers before the end of this year, raising fears that its gap with Western memory chipmakers is narrowing. The author notes that Sandisk makes NAND, not DRAM, so CXMT is not a direct competitor. Citing Mizuho analyst Jordan Klein, the author says CXMT is probably years away from mass production and its product is unlikely to match HBM chips, so investors shouldn't panic.
- SK Hynix Sinks 5% as China's CXMT Aims at Server Memory; Western Digital Drops 4%, Micron Falls 3%
SK Hynix shares fell 5% to $148.70 after China's CXMT signaled it is aiming a denser chip design at server memory, the most profitable part of the memory market. The selling spread to Western Digital (down 4% to $364.04) and Micron (down 3% to $925.45), while the Roundhill Memory ETF fell 4% and the Invesco QQQ Trust fell 2%. SK Hynix has dropped 22% over the past month, even though its preliminary Q2 FY2026 revenue reached 79.32 trillion won, up 256.8% year over year. Micron said demand will exceed supply in calendar 2027 and 2028, with more than 75% of its 2027 output already committed. The key test ahead is whether CXMT can win qualification from hyperscale customers for its server memory.
- As AI Devours Memory Chips, the Companies That Make Them Hold the Pricing Power
Memory chip prices are surging as AI data center demand outpaces supply: according to Tom's Hardware, one memory kit that cost about $191 a year ago now runs $1,118, up 485%. TrendForce reported conventional DRAM contract prices jumped roughly 90% to 95% in the first quarter of 2026, with NAND up 55% to 60%. SK Hynix said its memory capacity is essentially sold out for 2026, while Micron, SK Hynix and Samsung, which control over 95% of global DRAM production, are shifting wafer capacity toward high-bandwidth memory (HBM). Apple's DRAM costs for its next iPhone are projected to roughly triple, while memory executives say new fab capacity is not expected in meaningful volume until late 2027, with relief more likely in 2028 or 2029.
- Here's the Bull Case for NVIDIA, Micron, and SanDisk for 2027
NVIDIA CEO Jensen Huang says compute is now revenue, and AI buildout remains supply-constrained heading into 2027. The article highlights NVIDIA (NVDA), Micron (MU) and SanDisk (SNDK) as core suppliers, up 21.8%, 249.77% and 528.07% year to date respectively, and all three pulled back last week. Analyst consensus targets imply about 45% upside for NVDA at $328.72, 56% for MU at $1,555.13 and 46% for SNDK at $2,173. Over the past three months, estimates rose, with NVDA's fiscal 2028 EPS going from $12.7102 to $15.9146 and MU's fiscal 2027 EPS from $150.0075 to $176.6868. A key risk noted is that Micron fell after Chinese rival CXMT advanced a new chip, which could test pricing.
- Should You Buy Sandisk Stock Before Oct. 29?
Sandisk (SNDK) stock is up 566% so far in 2026 but more than 35% below its summer peak, and the company reports fiscal first-quarter 2027 results on Oct. 29. In its fiscal fourth quarter, revenue rose 372% year over year, gross margin was 84.6%, and operating income rose from $18 million to more than $7 billion. For the coming quarter, management guides to $10.55 billion in revenue at the midpoint, up 346% year over year, with a gross margin of about 84%. Wall Street expects EPS of $46.27 versus $1.22 a year earlier, and the company has multiyear agreements with eight clients under its new business model. The author says the stock trades under 22 times trailing earnings but advises a cautious approach given its volatility.
- Prediction: 2 Stocks That Will Be Worth More Than Micron 5 Years From Now
Micron, with a market cap of about $1.12 trillion, benefits from strong demand for memory chips from AI data centers. The author argues AMD could overtake it, citing a 50% year-over-year rise in second-quarter revenue to $11.5 billion, a 107% jump in data center revenue, and a server processor share of 34.5%, up from 27.3%. The author also believes SK Hynix, with a market cap of about $780 billion, could overtake Micron, given its 50% share of the high-bandwidth memory market versus Micron's 18% and a P/E of 11 compared with Micron's 25. Analysts expect SK Hynix's long-term EPS growth at 82%, versus 65% for Micron. If SK Hynix earns $44.63 per share in 2028 and trades at 15 times earnings, its stock could reach $669, about four times its current price.
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