Shares in SanDisk Corp. (SNDK), which have dropped more than 12% over the past five days, gained about 1% on Wednesday afternoon after the memory chipmaker said its business portfolio is in great shape.
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For context, California-based SanDisk designs, manufactures, and sells NAND flash memory storage products that save data even when power is turned off. The company’s products, including memory cards, USB flash drives, and external solid-state drives, are used by individual and enterprise customers alike.
Since the start of the year, the company’s shares have soared by nearly 500%, driven by an AI-fueled boom in demand for its memory and storage solutions. However, shares in SanDisk and U.S.-based rival Micron (MU) have come under pressure over the last few days, even as President Donald Trump’s two-day trip last week to his Chinese counterpart, Xi Jinping, yielded no major encouraging signs of a semiconductor deal.
SanDisk Says Focus Remains on Growth
However, SanDisk, speaking at JPMorgan’s (JPM) Global Technology, Media, and Communications Conference, sought to reassure investors. The memory chipmaker said it was operating at a “very dynamic” time in the business and that its business portfolio is in great shape.
SanDisk said it remains focused on its data center business and is currently making major transformation changes to its business that are progressing well. This is even as CEO David Goeckeler has emphasized earlier that the memory chipmaker was shifting to a new business model that prioritizes multi-year customer engagements to boost its earnings power.
Speaking at the conference, SanDisk harped on how its technology gives it an edge. The company said it is pouring its attention into making its products profitable, reducing ups and downs in the business, and pushing its growth levels further up.
Is SanDisk a Good Stock to Buy?
On Wall Street, SanDisk Corp.’s shares continue to boast a Strong Buy consensus rating from analysts. This is based on 13 Buys and three Holds issued by 16 analysts over the past three months.
However, the average SNDK price target of $1,516.88 only implies about 8% upside in the months ahead.
