We came across a bullish thesis on Sandisk Corporation on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on SNDK. Sandisk Corporation’s share was trading at $576.25 as of January 30th. SNDK’s forward P/E was 44.44 according to Yahoo Finance.

Sandisk Corporation develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the United States SNDK is positioned at the center of a critical and underappreciated bottleneck in AI infrastructure as hyperscalers race to deploy massive GPU clusters that cannot generate returns without fast, scalable access to data. While High Bandwidth Memory is prohibitively expensive and physically constrained, and hard disk drives are far too slow for modern AI workloads, high-capacity enterprise SSDs uniquely fill the gap.

This “warm storage” layer has transformed NAND from a commoditized component into mandatory infrastructure, making storage inelastic as hyperscalers must buy it regardless of price to avoid stranding billions of dollars in GPU investments. As AI shifts from text-based models to data-intensive multimodal workloads such as video and imagery, the need for petabyte-scale, low-latency storage becomes unavoidable, further strengthening this dynamic.

After years of destructive competition, the NAND industry has consolidated into a small oligopoly, with SanDisk holding roughly 10–11% market share. While not the largest player, SanDisk’s position as a fifth supplier is strategically valuable to hyperscalers seeking to avoid excessive dependence on dominant vendors like Samsung and SK Hynix.

This diversification role increases the likelihood of qualification, allocation during tight markets, and sustained participation in AI-driven demand growth. SanDisk’s joint venture manufacturing model lowers capital intensity while enabling access to advanced NAND processes, allowing it to compete effectively without bearing the full cost burden of leading-edge fabs.

Crucially, rising capital requirements and superior returns in High Bandwidth Memory are discouraging aggressive NAND capacity expansion, reducing the risk of rapid oversupply. With hyperscalers continuing large-scale AI investment and storage becoming non-discretionary, SanDisk stands to benefit from structurally improved pricing power, higher margins, and a multi-year demand tailwind that supports a bullish outlook on its role within the AI infrastructure stack.