Very Interesting Note from JP Morgan Analyst Harlan Sur on $SNDK

JPMorgan Resumes Coverage on $SNDK with Overweight Rating, PT $2,250. Here are comments that stood out to me. “In our view, Sandisk is in many respects uniquely positioned to capture the ongoing structural inflection in NAND demand driven by rapid growth in AI inference…” “NAND market TAM is inflecting from \~$70B in CY25 (JPMe) to $300B+ in CY26 and \~$500B in CY27, with Data Center representing the largest driver of growth (by far) as hyperscale/cloud customers increasingly deploy flash for inference-era workloads (incl. persistent KV cache - a major driver of bit demand growth)…” “Even at floor pricing, we think NBMs sustain \~80% GMs across the multi-year contract lives, with upside captured through variable pricing mechanisms. We also view the LT financial model as embedding meaningful earnings leverage that we think is not fully captured in current consensus estimates, as mid-/high-teens% revenue growth ultimately translates into an EPS growth CAGR north of 25%. Layered on top, management's commitment to returning 100% of excess cash flow to shareholders should drive an aggressive share count reduction trajectory that further amplifies EPS growth on a per-share basis.”