NAND Flash Manufacturer SanDisk Sees Surge in Stock Prices Amid AI Data Center Demand
NAND flash, previously overlooked in the "AI rally," has emerged as a beneficiary of the AI boom, leading to a significant surge in the stock price of SanDisk (ticker SNDK), the worlds fifth-largest NAND flash manufacturer. As AI data centers are rapidly constructed, the demand for solid-state drives (SSDs), which serve as data storage devices, has increased dramatically. Wall Street analysts generally believe there is substantial room for further stock price increases.
According to NASDAQ data, SanDisks stock price rose by 38.11% over the past month (from September 23 to October 22). Acquired by Western Digital in 2016, SanDisk was spun off and relaunched in February of this year. Initially, its stock hovered around the $30 to $40 range, but it surged to $146.95 recently. The year-to-date increase exceeds an impressive 300%.
SanDisk specializes in producing storage devices based on NAND flash technology. Each SSD contains multiple NAND flash chips. NAND flash is a type of non-volatile memory semiconductor that retains data even when the power is off. After enjoying a boom during the supercycle from 2020 to 2021, the industry entered a downturn starting in 2022.
The turnaround for NAND flash has been largely driven by the expansion of the AI industry into inference stages. Inference involves responding to user queries based on accumulated data, requiring storage devices capable of processing large volumes of data quickly and reliably.
This shift is why NAND flash-based eSSDs (enterprise-grade high-performance SSDs) have begun to be widely adopted in AI data centers. Previously, hard disk drives (HDDs) were predominantly used, but the trend is now shifting towards eSSDs, which offer higher input/output speeds and greater efficiency than HDDs. Major hyperscalers, such as Google and Amazon, have started to make large-scale purchases of eSSDs to meet the demands of their data centers, further boosting the outlook for NAND flash manufacturers like SanDisk.
According to NASDAQ data, SanDisks stock price rose by 38.11% over the past month (from September 23 to October 22). Acquired by Western Digital in 2016, SanDisk was spun off and relaunched in February of this year. Initially, its stock hovered around the $30 to $40 range, but it surged to $146.95 recently. The year-to-date increase exceeds an impressive 300%.
SanDisk specializes in producing storage devices based on NAND flash technology. Each SSD contains multiple NAND flash chips. NAND flash is a type of non-volatile memory semiconductor that retains data even when the power is off. After enjoying a boom during the supercycle from 2020 to 2021, the industry entered a downturn starting in 2022.
The turnaround for NAND flash has been largely driven by the expansion of the AI industry into inference stages. Inference involves responding to user queries based on accumulated data, requiring storage devices capable of processing large volumes of data quickly and reliably.
This shift is why NAND flash-based eSSDs (enterprise-grade high-performance SSDs) have begun to be widely adopted in AI data centers. Previously, hard disk drives (HDDs) were predominantly used, but the trend is now shifting towards eSSDs, which offer higher input/output speeds and greater efficiency than HDDs. Major hyperscalers, such as Google and Amazon, have started to make large-scale purchases of eSSDs to meet the demands of their data centers, further boosting the outlook for NAND flash manufacturers like SanDisk.
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한혜*
정말 미래적인 기술이네요. 어서 빨리 상용화 되었으면 좋겠습니다.
김한*
창업뉴스라고 왔더니 창업에 관련된게 하나도 없네요.
김홍*
이게 나라냐!!
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