SanDisk (storage/memory supplier) will face margin compression and reduced demand as AI capex unwinds in 2027–2028 and profitability pressures force LLM providers to optimize efficiency, reducing storage and compute hardware purchases.
Samsung's production halt and potential supply shortage of memory chips will create tailwinds for SanDisk/Kioxia's NAND pricing and competitive positioning. Memory supply tightness supports SNDK pricing power.
Author expects SNDK to run to $2000 per share and anticipates a stock split at the next earnings announcement.
Author realized gains on SNDK through tactical trading around earnings dips and momentum plays, anticipating further gap-ups. Position involved initial stock purchases, call options sold in the 1200s, and repeated entries/exits that netted $38k profit.
Investor is doubling down on margin, allocating capital to Sandisk alongside Micron and Nebius positions, indicating confidence in the semiconductor sector recovery.
Author took a position in SNDK and regrets selling early, implying conviction in further upside.
Author is deploying profits from successful META puts into SNDK calls, indicating conviction in near-term upside for SanDisk.
Author holds 111 shares of SanDisk (memory/chip company) for exposure to AI-driven chip demand, despite high per-share price.
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