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Harsh Chauhan, The Motley Fool
Wed, July 22, 2026 astatine 8:18 AM CDT 4 min read
SK Hynix is 1 of the astir important representation manufacturers successful the world. It enjoys a steadfast marketplace stock successful the dynamic random-access representation (DRAM) and NAND flash markets, which is wherefore the CEO's latest comments suggest the representation supercycle is present to stay.
The South Korean bellwether's CEO, Kwak Noh-Jung, precocious told Reuters successful an interrogation that helium expects the representation shortage to worsen successful 2027. What's more, helium added that representation request volition proceed to outstrip proviso beyond 2030, contempt the company's efforts to aggressively adhd capacity. All this bodes good for Sandisk (NASDAQ: SNDK), 1 of the hottest names successful the representation manufacture that has made investors importantly richer implicit the past year.
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Sandisk is going to merchandise its fiscal 2026 fourth-quarter results connected Aug. 5. SK Hynix's comments astir the authorities of the representation manufacture suggest that Sandisk could spell connected a parabolic tally aft its upcoming report. Let's spot why.
Sandisk's numbers and guidance could crush statement expectations
Sandisk is simply a pure-play NAND flash retention company. It controls 13% of this market, according to Counterpoint Research. SK Hynix is bigger than Sandisk successful NAND flash with an 18% marketplace share. So, erstwhile SK Hynix notes that the representation shortage is acceptable to worsen successful 2027, 1 tin presume that the monolithic terms hikes powering Sandisk's maturation are present to stay.
The NAND flash industry's gross accrued 3.5x twelvemonth implicit twelvemonth successful Q1 to $46 billion. Analysts are anticipating Sandisk's fiscal Q4 gross to summation by 338% twelvemonth implicit twelvemonth to $8.34 billion. The bottom-line leap volition beryllium adjacent much awesome astatine a whopping 117x to $34.15 per share. If SK Hynix's forecast astir the representation proviso concern getting worse turns into reality, past determination is simply a coagulated accidental of Sandisk's numbers exceeding expectations.
After all, the statement net estimation for fiscal Q4 isn't precise acold from the higher extremity of Sandisk's net per stock guidance of $33.00. The institution has been striking semipermanent agreements with customers that see a adaptable pricing option, which volition let it to seizure imaginable terms increments successful NAND flash. This should pave the mode for stronger-than-expected guidance, fixed SK Hynix's forecast that the proviso concern volition tighten.
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