| | | SanDisk shares rise on positive MS note; strong NAND demand and eSSD surge drive optimism
Sep. 04, 2025 10:15 AM ET Sandisk Corporation (SNDK) Stock MUBy: Khushi Singh, SA News Editor
SanDisk (NASDAQ: SNDK) shares surged 8.7% after Morgan Stanley cited strengthening fundamentals in the NAND market.
The firm highlights a sharp acceleration in enterprise SSD (eSSD) demand, largely driven by hyperscalers responding to AI infrastructure buildouts and ongoing HDD shortages. These large, upside orders—totaling tens of exabytes—are redirecting NAND supply away from consumer markets like PCs and smartphones.
Adding to the bullish case, supply disruptions from Korean memory suppliers (e.g., Samsung’s Xian fab transition and reduced output) and investment restrictions in China may prolong this tight supply environment. While SanDisk’s current exposure to enterprise SSD is limited, Morgan Stanley sees upside as its BICS 8 process ramps in 2H25, positioning it better for 2026.
The report suggests NAND pricing is likely to rise in Q4, particularly in enterprise segments, with conditions expected to remain favorable into 2026. While Micron ( MU) also benefits from this trend, NAND plays a smaller role in its overall business compared to DRAM.
Morgan Stanley remains focused on SanDisk’s long-term earnings potential, estimating $7+ through-cycle EPS, supporting their bullish stance.
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