Sandisk (SNDK) Drops 6% on $1B Nanya Equity Deal; Supply-Security Bet Debated

Sandisk (SNDK) shares fell over 6% after announcing a $1 billion equity investment in Nanya Technology, a Taiwan memory-chip supplier. The move targets supply constraints in the memory market and aims to give Sandisk more control over its supply chain. Despite a strong turnaround, investor sentiment split. Sandisk has posted rapid growth, including a reported Q2 FY2026 revenue of about $3.03B and a 61% year-over-year jump (also cited as beating expectations). The company highlighted financial capacity—free cash flow of about $980M in Q2 FY2026, cash and equivalents near $1.54B, and a net cash-positive position. Bullish investors see the dip as manageable and tied to growth momentum, especially as the data center segment was cited as up 76% year over year, supported by AI infrastructure demand. Skeptics question the timing and risks of a large foreign stake, including execution uncertainty, geopolitical exposure, and return timing. Guidance remained supportive: Q3 FY2026 revenue projected at roughly $4.4B–$4.8B and non-GAAP EPS of $12–$14, with gross margins up to 67%. Analysts were also broadly positive, with 14 of 20 rating the stock Buy/Strong Buy and a consensus target near $770. Traders may treat this as a “headline volatility” event for Sandisk rather than a fundamental crypto catalyst, pending clarity on how the Sandisk–Nanya deal impacts costs and margins over time.