Equity Long-Short

Mo Aziz

Equity Bottom-Up

<ul>
<li>Most impressive US play on semiconductor memory segment. Management have substantially de-risked business from cyclical vagaries, BS turning strong, and so is focus to reward shareholders.  </li>
<li>Only NAND producer in history that committed to 80% gross margin through FY2030; five NBM agreements carry US$42bn contractual revenue floor, backed by US$11bn guarantees.</li>
<li>BULLISH maintained; TP US$2,050 (11× FY2027E EPS US$186); currently trading at 9.5× spot, sector multiple compression creates entry into the highest-margin NAND franchise in history.</li>
</ul>


Most impressive US play on semiconductor memory segment. Management have substantially de-risked business from cyclical vagaries, BS turning strong, and so is focus to reward shareholders.  
Only NAND producer in history that committed to 80% gross margin through FY2030; five NBM agreements carry US$42bn contractual revenue floor, backed by US$11bn guarantees.
BULLISH maintained; TP US$2,050 (11× FY2027E EPS US$186); currently trading at 9.5× spot, sector multiple compression creates entry into the highest-margin NAND franchise in history.


SanDisk (SNDK US): From Spinoff to AI-Memory Powerhouse — 80% Margins, $42bn RPO and HBF Optionality

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>SanDisk Corporation reported strong financial performance for the fourth quarter and fiscal year 2026, demonstrating significant growth driven primarily by the rapidly expanding demand for NAND memory products fueled by the rise of artificial intelligence (AI) and data-intensive workloads.</li><li>The company’s strategic emphasis on deepening relationships with key customers through its New Business Models (NBMs) and advancing its proprietary technology portfolio, notably the BiCS 8 NAND and the Stargate QLC platform, contributed to record revenue, gross margin, and earnings per share.</li><li>Revenue for the fourth quarter reached $8.97 billion, marking a 51% sequential increase and a 372% year-over-year rise, exceeding guidance expectations.</li></ul>

SanDisk Corporation reported strong financial performance for the fourth quarter and fiscal year 2026, demonstrating significant growth driven primarily by the rapidly expanding demand for NAND memory products fueled by the rise of artificial intelligence (AI) and data-intensive workloads.The company’s strategic emphasis on deepening relationships with key customers through its New Business Models (NBMs) and advancing its proprietary technology portfolio, notably the BiCS 8 NAND and the Stargate QLC platform, contributed to record revenue, gross margin, and earnings per share.Revenue for the fourth quarter reached $8.97 billion, marking a 51% sequential increase and a 372% year-over-year rise, exceeding guidance expectations.

SanDisk’s $16.5 Billion AI Backstop — Can The NAND Boom Keep Running?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing.</li>
<li>SKH has confidentially filed for an ADR issuance which could see it potentially launch a raising in July 2026, as per media reports.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



SK Hynix (000660 KS) (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing.
SKH has confidentially filed for an ADR issuance which could see it potentially launch a raising in July 2026, as per media reports.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: SK Hynix ADR Listing - Part 2 - The Quest for a US$1tn+ Valuation

<ul>
<li>Management held a 3.5-hour Investor Day on 13 August targeting ~80% GM and ~75% OM for FY2028–2030, 9 percentage points above our prior FY2027E assumption.</li>
<li>The first HBF memory die is taped out, Jim Keller joined the Advisory Board, the first HBF specification was published today at Flash Memory Summit.</li>
<li>We raise FY2027E EPS from $186 to $205 and TP from US$1,860 to US$2,050 (10x FY2027E, 10% discount to Micron); BULLISH, +24.9% upside potential</li>
</ul>


Management held a 3.5-hour Investor Day on 13 August targeting ~80% GM and ~75% OM for FY2028–2030, 9 percentage points above our prior FY2027E assumption.
The first HBF memory die is taped out, Jim Keller joined the Advisory Board, the first HBF specification was published today at Flash Memory Summit.
We raise FY2027E EPS from $186 to $205 and TP from US$1,860 to US$2,050 (10x FY2027E, 10% discount to Micron); BULLISH, +24.9% upside potential


SanDisk (SNDK US) Investor Day 2026: The Earnings Floor Has Moved — TP Raised to US$2,050

Equity/Index & Cross Asset Volatility Specialist, Cameron Design

Jay Cameron

Equity/Index & Cross Asset Volatility Specialist

Cameron Design

We specialize in financial products and volatility. Our strategies balance speed, data, and risk control to capture opportunities across global markets. Our research leverages AI and data analytics to continuously refine our algorithms and adapt to evolving market dynamics.

Equity Derivatives

<ul>
<li>The AI inference bottleneck has created growing demand for Enterprise SSDs, driving a persistent supply-demand imbalance through 2028.</li>
<li>A long-term Kioxia JV extension locks in capacity, allowing a shift to high-margin allocation with guidance up to 67% Gross Margin.</li>
<li>Record Q2 Free Cash Flow and 51% Gross Margins confirm the company's financial recovery from less profitable periods and accelerating earnings trajectory.</li>
</ul>


The AI inference bottleneck has created growing demand for Enterprise SSDs, driving a persistent supply-demand imbalance through 2028.
A long-term Kioxia JV extension locks in capacity, allowing a shift to high-margin allocation with guidance up to 67% Gross Margin.
Record Q2 Free Cash Flow and 51% Gross Margins confirm the company's financial recovery from less profitable periods and accelerating earnings trajectory.


[High Conviction] Sandisk: The Inference Bottleneck & 67% Margin Pivot

United States

SanDisk Corporation designs, develops, and manufactures data storage solutions in a variety of form factors using our flash memory, proprietary controller and firmware technologies. The Company's solutions include removable cards, embedded products, universal serial bus, or USB, drives, digital media players, wafers and components.

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Sandisk Corp (SNDK US)

SanDisk (SNDK US): From Spinoff to AI-Memory Powerhouse — 80% Margins, $42bn RPO and HBF Optionality

SanDisk is currently enjoying its strongest-ever economics: 80% GM targets, $42bn contracted revenue, massive buybacks and free HBF AI-memory...

Mo Aziz

SanDisk’s $16.5 Billion AI Backstop — Can The NAND Boom Keep Running?

SanDisk Corporation reported strong financial performance for the fourth quarter and fiscal year 2026, demonstrating significant growth driven...

Baptista Research

Aequitas: SK Hynix ADR Listing - Part 2 - The Quest for a US$1tn+ Valuation

SK Hynix (000660 KS) (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing. In this note, we have a look at the...

Sumeet Singh

SanDisk (SNDK US) Investor Day 2026: The Earnings Floor Has Moved — TP Raised to US$2,050

Investor Day: 80% GM target, HBF die taped out, 100% cash return — all above prior assumptions. FY2027E EPS raised to $205, TP to US$2,050. BULLISH.

Mo Aziz

[High Conviction] Sandisk: The Inference Bottleneck & 67% Margin Pivot

Sandisk is up 22% since our last report after end of January and outperforms despite market turbulence. Market commentators suggesting Sandisk...

Jay Cameron

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