Sandisk Rode an Estimated 70% Jump in NAND Prices. TrendForce Sees 10% to 15% This Quarter.
The memory boom isn't ending. It's slowing -- and the difference matters enormously for earnings estimates built on the steep part of the curve.
Overview
NAND flash contract prices were projected to climb 70% to 75% in the spring quarter, according to research firm TrendForce. For the current quarter, the same firm projects increases of 10% to 15%.
For most of the market, that shift is a footnote. For Sandisk (NASDAQ:SNDK), the closest thing to a pure NAND flash bet among large U.S. stocks, it is close to the entire investment case.
Details
The memory specialist's earnings exploded because flash pricing went off the charts. Prices are still projected to rise -- just far more slowly. And that distinction, between a boom ending and a boom decelerating, is what I think the growth stock's earnings estimates now ride on.
Source
Originally published at www.fool.com.