SK Hynix Has Fantastic News for Memory Stocks. Time to Buy Sandisk Before It Skyrockets on Aug. 5
Harsh Chauhan, The Motley Fool
Wed, July 22, 2026 at 6:48 PM GMT+5:30
4 min read
- SKHY
-2.51% - SNDK
+0.29% - NVDA
-0.17%
SK Hynix is one of the most important memory manufacturers in the world. It enjoys a healthy market share in the dynamic random-access memory (DRAM) and NAND flash markets, which is why the CEO’s latest comments suggest the memory supercycle is here to stay
The South Korean bellwether’s CEO, Kwak Noh-Jung, recently told Reuters in an interview that he expects the memory shortage to worsen in 2027. What’s more, he added that memory demand will continue to outstrip supply beyond 2030, despite the company’s efforts to aggressively add capacity. All this bodes well for Sandisk (NASDAQ: SNDK), one of the hottest names in the memory industry that has made investors significantly richer over the past year
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Sandisk is going to release its fiscal 2026 fourth-quarter results on Aug. 5. SK Hynix’s comments about the state of the memory industry suggest that Sandisk could go on a parabolic run after its upcoming report. Let’s see why
Sandisk’s numbers and guidance could crush consensus expectations
Sandisk is a pure-play NAND flash storage company. It controls 13% of this market SK Hynix is bigger than Sandisk in NAND flash with an 18% market share. So, when SK Hynix notes that the memory shortage is set to worsen in 2027, one can assume that the massive price hikes powering Sandisk’s growth are here to stay
The NAND flash industry’s revenue increased 3.5x year over year in Q1 to $46 billion. Analysts are anticipating Sandisk’s fiscal Q4 revenue to increase by 338% year over year to $8.34 billion. The bottom-line jump will be even more impressive at a whopping 117x to $34.15 per share. If SK Hynix’s forecast about the memory supply situation getting worse turns into reality, then there is a solid chance of Sandisk’s numbers exceeding expectations
After all, the consensus earnings estimate for fiscal Q4 isn’t very far from the higher end of Sandisk’s earnings per share guidance of $33.00. The company has been striking long-term agreements with customers that include a variable pricing option, which will allow it to capture potential price increments in NAND flash. This should pave the way for stronger-than-expected guidance, given SK Hynix’s forecast that the supply situation will tighten
