SanDisk (Sandisk) shares fell by about 14% on June 23, as the global memory sector came under a selloff on the same day. Korean tech stocks dropped sharply and spread to U.S.-listed equities. TipRanks has featured stock professional James Foord, a top 3% five-star investor among its stock professionals. He began turning bearish on SNDK about a month ago, but recently publicly said: “I was wrong—edge AI changes everything,” and has switched to a “Buy” rating.
Sandisk Financial Performance: Non-GAAP Gross Margin Near 80%
Since being spun off from Western Digital (Western Digital), Sandisk has become one of the best-performing companies in the market, with its stock price soaring more than 4,000% over the past 12 months.
In the most recent quarter, Sandisk’s revenue nearly doubled quarter over quarter, and its non-GAAP gross margin was close to 80%. The surge in global demand for storage products drove this growth; however, cyclical volatility inherent to the memory industry and a rapid jump in valuations have made some investors more cautious.
James Foord’s Bullish “Edge AI” Logic After Shorting
When explaining his change in stance, Foord said: “The drop in LLM token spending strongly signals that a wave of edge computing is coming.” He believes complex AI models will run on local devices such as laptops and smartphones, rather than relying on data centers or the cloud, and ultimately will cover all connected devices. He added: “NAND supply growth is still constrained, but demand is expanding—and Sandisk has become the biggest pure-play beneficiary.”
Foord also mentioned additional macro catalysts: the Trump administration has listed AI leadership as a strategic priority (even considering an investment in AI companies); Saudi Arabia and the UAE are building AI parks; Europe and China are also actively involved. He believes that despite the recent surge in the stock price, SNDK’s valuation is still too low, and that personally, he doesn’t think it’s far-fetched for the stock price to reach $4,000 in the coming few years (a personal view, not an institutional forecast).
Wall Street Analyst Consensus: 14 Buys, 2 Holds, Average Target $1,843.44
Based on TipRanks data, Wall Street’s consensus on SNDK is a “Strong Buy”: 14 analysts rate it as “Buy,” and 2 rate it as “Hold”; the 12-month average target share price is $1,843.44.
The article notes that the current average target price is about 6% below the current price, which more likely reflects the speed of the stock’s rise rather than concerns about the company’s fundamentals. After such a large rally, analysts’ price targets usually take time to catch up, and as estimates are continuously revised over the coming months, this gap is expected to narrow.
Frequently Asked Questions
What does James Foord’s ranking on TipRanks mean?
According to the article, James Foord is a top 3% five-star investor among the stock professionals listed by TipRanks. TipRanks ranks based on the historical prediction accuracy of analysts and investors.
Why did SNDK fall 14% in a single day after rising more than 4,000% in 12 months?
According to the report, the immediate trigger for this decline was a selloff wave in the global memory sector. It originated from a sharp drop in Korean tech stocks and then spread to U.S.-listed shares. The article also points out that after such a large rally, valuation levels and cyclical factors in the memory industry have led some investors to become cautious.
How credible is Foord’s prediction that SNDK will reach $4,000?
According to the article, the $4,000 prediction is Foord’s personal bold outlook rather than an institutional consensus target. Wall Street’s 14 analysts’ 12-month average target share price is $1,843.44, far below $4,000. Foord’s prediction is based on his long-term view that edge AI will drive NAND demand.
