In late January 2026, Kioxia Corporation and Sandisk Corporation extended their long-running flash memory joint venture at the Yokkaichi and Kitakami plants through December 31, 2034, with Sandisk committing US$1.17 billion in manufacturing payments between 2026 and 2029 to secure advanced 3D flash supply.
On the same day, Sandisk reported sharply higher quarterly and six-month results, underscoring how AI-driven demand for 3D NAND and enterprise SSDs is reshaping its business profile and deepening its reliance on AI-enabled smart manufacturing partnerships.
We’ll now examine how Sandisk’s extended Kioxia alliance and AI-focused manufacturing approach influence its investment narrative amid rapidly evolving storage demand.
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To own Sandisk here, you really have to buy into the idea that AI-driven demand for fast, high-capacity storage remains strong enough to justify both its rich valuation and its heavy capital commitments. The newly extended Kioxia joint venture fits that thesis neatly: it locks in advanced 3D flash supply through 2034 and gives more visibility around one of the market’s key bottlenecks, which supports the near-term catalyst of continued revenue and margin strength. At the same time, that US$1.17 billion in payments between 2026 and 2029 slightly raises execution and balance sheet risk if pricing or demand were to cool. Layer on a young board and management team, a highly volatile share price, and already elevated expectations, and the immediate debate is less about growth existing and more about how much is already priced in.
However, investors should also be aware of how quickly sentiment could turn if AI storage demand or pricing softens. Sandisk’s shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.
SNDK 1-Year Stock Price Chart
Four Simply Wall St Community fair value views span roughly US$265 to about US$1.94 billion per share equivalent, underscoring how far opinions stretch on Sandisk’s worth. Set against a stock that has already moved very sharply and a business now committing over US$1.17 billion to secure supply, this spread shows why it can pay to weigh several contrasting risk and growth narratives before deciding how Sandisk might fit into your portfolio.
Explore 4 other fair value estimates on Sandisk – why the stock might be worth over 2x more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SNDK.
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