Why Sandisk Stock Just Popped

Sandisk Corporation (NASDAQ: SNDK) banal soared 8.6% done 10:25 a.m. ET Tuesday connected improved sentiment for semiconductor stocks -- and a large boost for its memory-chip archrival Micron (NASDAQ: MU).

You tin convey Japanese megabank Mizuho for the boost.

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Mizuho loves representation stocks

Today's catalyst comes from Mizuho, which this greeting reiterated its outperform standing and $800 terms people connected Micron. Citing beardown request for machine representation driven by the maturation of artificial intelligence, Mizuho predicts the representation marketplace volition stay 30% to 50% undersupplied passim 2026 and 2027, and the terms of high-bandwidth memory, successful particular, could surge 70% to 100% adjacent year.

That's large quality for Micron, of people -- but what does it mean for Sandisk?

What this means for Sandisk

After all, portion Micron makes some DRAM chips (used to manufacture high-bandwidth representation (HBM) and NAND flash memory, Sandisk only makes NAND. Doesn't this mean that Mizuho's bullish HBM enactment is applicable lone for Micron, and not for Sandisk astatine all?

Not necessarily.

Sandisk has an reply to Micron's HBM business, you see, and it's called High Bandwidth Flash, oregon HBF -- and conscionable past week, Mizuho was talking astir rising request for HBF, predicting that this volition besides origin NAND proviso to declaration successful 2027.

Granted, astatine the time, Mizuho was inactive talking astir Micron. But this is simply a marketplace wherever Sandisk tin vie arsenic good -- which astir apt explains wherefore bully quality for Micron contiguous is sending Sandisk banal higher.

And what it means for you

All this said, Sandisk banal does cost 50 times earnings, and Micron lone 35x. On a time erstwhile Micron is being boosted, and Sandisk is conscionable drafting disconnected Micron's bully news, the logical happening to bash is bargain Micron alternatively of Sandisk.

Sometimes, the casual determination is the close one.

Should you bargain banal successful Sandisk close now?

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