SK Hynix Has a Massive Warning for Sandisk Stock Investors
The South Korean memory giant plans to invest aggressively in more NAND flash capacity.
Overview
Sandisk (NASDAQ: SNDK) stock has made investors significantly richer over the past year, delivering stunning gains of more than 3,660% as of this writing. The stock's phenomenal jump can be justified by the incredible increase in its revenue and earnings, fueled by the artificial intelligence (AI)-driven demand for storage chips.
The demand for the NAND flash chips that Sandisk sells has significantly outpaced supply. The supply shortage has resulted in a significant jump in NAND flash prices, powering Sandisk's growth in the process. However, a recent announcement by memory giant SK Hynix may dent the very catalyst that's fueling Sandisk growth.
Image source: The Motley Fool.
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Originally published at www.fool.com.