Sandisk plans 10% price hike for NAND products from April 1

Published:2025-03-08 02:54:59
Sandisk plans 10% price hike for NAND products from April 1

Investing.com -- SanDisk (SNDK) (NASDAQ:SNDKV) has announced plans to increase the prices of all its NAND products by over 10% starting from April 1, according to a letter sent to its customers on March 7. The price hike will affect all products that are aimed at channels and consumer customers. Mizuho TMT Sector Specialist, Jordan Klein, who highlighted the news, noted that Sandisk’s stock has significantly outperformed all other semiconductor stocks since its spin-out from Western Digital (NASDAQ:WDC) in February.

Klein also pointed out that Kioxia Holdings Corp (TYO:285A), a peer of Sandisk, saw its stock rise by 17% in Japan. Sandisk shares its fabrication capacity and NAND output with Kioxia.

The decision to raise prices comes in response to a tight supply situation caused by tariff changes, inventory reductions by consumers, and ongoing aggressive cutbacks in NAND production by all suppliers.

Klein noted that despite the current economic uncertainty, which has made people wary of commodity memory, this move aligns with recent industry forecasts. These forecasts predict a major shift in NAND pricing from negative mid-teen quarter-on-quarter declines from Q4 to Q1, to flat to down 5% in Q2, and then an increase of 10-15% by Q3.

Interestingly, despite sharing fabrication facilities and NAND output with Sandisk, Kioxia trades at approximately a 40% premium compared to Sandisk. Klein suggested that investors should aim to be two quarters ahead of the cycle turn when buying memory. Currently, Sandisk trades at 5 times its projected ’26 EBITDA and 9 times its EPS.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.285A: is this perennial leader facing new challenges?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Sure, there are always opportunities in the stock market – but finding them feels more difficult now than a year ago. Unsure where to invest next? One of the best ways to discover new high-potential opportunities is to look at the top performing portfolios this year. ProPicks AI offers 6 model portfolios from Investing.com which identify the best stocks for investors to buy right now. For example, ProPicks AI found 9 overlooked stocks that jumped over 25% this year alone. The new stocks that made the monthly cut could yield enormous returns in the coming years. Is 285A one of them?

Unlock ProPicks AI to find out