Friday, February 25, 2011

SanDisk (NASDAQ:SNDK) Should Beat Out Micron (NASDAQ:MU), Toshiba, Samsung in Tablet Opportunity

SanDisk Corporation (NASDAQ:SNDK) is a global leader in the flash memory card market and competes with Hynix, Micron (NASDAQ:MU), Samsung, STMicroelectronics, Toshiba and IM Flash (a joint venture of Micron and Intel).

We recently updated our forecast for SanDisk based on its strong performance in Q4 10 and the positive outlook for flash storage in the future given the rising popularity of smartphones and other portable hand held devices that use flash storage.

We believe that the recent surge in popularity of tablet devices in particular and the use of solid state drives (or SSDs), which are based on NAND based flash memory, provides SanDisk with a tremendous opportunity going forward. Below we here try to gauge the impact of the rising tablet market and the upside potential to our $50.60 Trefis price estimate for SanDisk’s stock.

The Tablet Opportunity

The launch of Apple’s iPad (NASDAQ:AAPL) in 2010 and its huge impact so far have led to a scramble among technology giants to launch their own tablets to get a foothold in this market. The tablet market will likely change the way people use computers, and so major computer companies need to have some competing product or risk missing out on the huge growth in this segment.





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2 comments:

Anonymous said...

Using such title may catch somebody's eyeballs but it has nothing to do what the content says. Also Sandisk is one of the end users of the flash chips like Apple, although it has a JV with Toshiba (riding on the Flash business tides with Toshiba sharing chip output). Have you ever opened any device and seen "SanDisk" printed on an flash IC part??

Anonymous said...

Ditto. What a useless article, unless of couse your trying to pump Sandisk