Why Sandisk Stock Soared Today

For the 2nd time successful a row, Sandisk (NASDAQ: SNDK) banal is soaring, up 8% done 10:35 a.m. ET Tuesday.

Sandisk banal gained a beardown 6% higher connected Monday aft analysts astatine Morgan Stanley sounded the all-clear for artificial quality stocks, confirming revenues are increasing accelerated capable to supply AI hyperscalers the currency they request to bargain the semiconductor chips they want. Today, Sandisk's getting an adjacent much Sandisk-specific catalyst:

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Its conception of utilizing flash machine representation arsenic a substitute for DRAM is catching on.

Sandisk and SK Hynix collaborate

The conception is called "High Bandwidth Flash" (HBF), and it's analogous to however DRAM chips are stacked to make High Bandwidth Memory (HBM). Today, Sandisk announced it is partnering with Korean DRAM specializer SK Hynix (NASDAQ: SKHY) to make manufacture standards for HBF memory.

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), a hyperscaler ever-hungry for caller alternatives to HBM -- which remains costly and successful abbreviated proviso -- is joining a consortium of AI manufacture companies led by Sandisk and SK Hynix, too. The extremity isn't to regenerate HBM truthful overmuch arsenic to supplement that exertion and enactment up proviso deficits successful HBM, portion ensuring that HBM and HBF tin cooperate efficaciously wrong the aforesaid system.

What this means for Sandisk

Sandisk's expertise successful producing NAND chips, besides indispensable for AI inference functions (i.e., answering AI questions), has already lit a occurrence nether Sandisk stock, which is up astir 2,800% implicit the past 52 weeks. Expanding the usage cases for NAND adjacent further by making HBF a modular instrumentality that AI hyperscalers tin usage volition payment Sandisk adjacent much and assistance guarantee that immoderate other accumulation capableness Sandisk adds tin beryllium enactment to a caller usage that volition support nett margins high.

That makes this a bully time to ain Sandisk stock.

Should you bargain banal successful Sandisk close now?

Before you bargain banal in Sandisk, see this:

The Motley Fool Stock Advisor analyst squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Sandisk wasn't 1 of them. The 10 stocks that made the chopped are built for semipermanent maturation and could nutrient monster returns successful the coming years.

Consider when Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you'd person $395,463!* Or when Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you'd person $1,268,290!*