Why Did Sandisk Stock Bounce Back Today?

Sandisk (NASDAQ: SNDK) banal got caught up successful an epic sell-off past week arsenic semiconductor stocks mislaid $1 trillion successful marketplace capitalization. Sandisk crashed 11.4% Friday -- but contiguous it's bouncing back.

Shares of the NAND representation chips shaper gained 4.6% done 9:40 a.m. ET Monday, and investors tin convey Nvidia (NASDAQ: NVDA) CEO Jensen Huang for this. Huang says we are inactive conscionable astatine "the outset of the AI revolution," which has much country to run.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Nvidia finds a person

Matching Nvidia's actions to Huang's words, Nvidia contiguous announced a "multi-year exertion partnership" with South Korean representation chip-maker SK Hynix. Aiming to physique a planetary strategy of "AI factories," the 2 companies volition collaborate connected precocious representation (and besides precocious fabrication with the superior concern needed to marque it happen).

Moreover, successful a virtuous circle, Nvidia plans to usage its ain artificial quality to plan caller AI chips that successful crook marque its AI smarter.... truthful that it tin plan adjacent amended AI chips successful the future. SK Hynix's relation volition beryllium to align its caller representation chips with Nvidia's AI chips. Going forward, SK Hynix chips volition beryllium utilized successful "Vera Rubin AI supercomputers, Vera CPUs, RTX Spark-powered PCs and Jetson Thor robotic computing platforms."

What does this mean for Sandisk?

Now here's wherever things get weird. Two abstracted Wall Street analysts decided to rise their terms targets connected Sandisk successful the aftermath of this news. Bank of America raised its PT to $2,100 per share, portion Mizuho raised its people to $2,200.

Analysts mention beardown representation prices arsenic supporting the terms targets, but still, I wonder: If Nvidia is tying up with SK Hynix arsenic a preferred supplier of memory, is that truly bully quality for Sandisk?

Because I benignant of deliberation it isn't.

Should you bargain banal successful Sandisk close now?

Before you bargain banal in Sandisk, see this:

The Motley Fool Stock Advisor analyst squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Sandisk wasn’t 1 of them. The 10 stocks that made the chopped are built for semipermanent maturation and could nutrient monster returns successful the coming years.

Consider when Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $443,191!* Or when Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,258,838!*

That show is wherefore radical listen. With a way grounds of beating the S&P 500 by astir 5x, Stock Advisor offers a chiseled advantage. Don't miss the latest apical 10 list, disposable with Stock Advisor, and articulation an investing assemblage built for the agelong haul.