SK Hynix plans a $51 billion investment to boost NAND flash production by 2029, potentially easing supply shortages driving Sandisk’s 3,660% gain.
SK Hynix will invest $51 billion to build a new NAND flash production facility in South Korea by 2029, aiming to address the global supply shortage. The move targets rising demand from AI data centers, a key driver of Sandisk’s 3,660% stock surge over the past year.
Sandisk, which holds a 13% share of the NAND flash market, has benefited from soaring prices due to tight supply. SK Hynix, controlling 18% of the market, seeks to capitalize on the same demand trends but could undermine Sandisk’s growth catalyst.
The expansion may pressure NAND flash prices if supply outpaces demand, potentially cooling Sandisk’s recent rally. Markets have yet to react to the announcement, but the long-term impact on pricing dynamics remains a key risk.