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

Published 07/03/2025, 15:10
© Reuters.

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 (NYSE:MFG) 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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.