Just one day after Morgan Stanley helped boost Sandisk (NASDAQ: SNDK) stock nearly 7% in a day, shares of the memory specialist are giving back some gains on Thursday — falling 1.7% through 11 a.m.
You can blame Broadcom (NASDAQ: AVGO) for that. How Broadcom Q2 earnings sank Sandisk It’s a shame, really. As recently as yesterday, Morgan Stanley was telling investors “there’s no quick fix to the memory shortage,” that DRAM prices soared 40% in Q2, and are set for another 15% rise in Q3.
This would be good news for Sandisk, which, while it doesn’t make DRAM, does manufacture other forms of memory chips — in particular, “high-bandwidth flash” memory that’s also useful in AI data centers. Recognizing this, MS boosted both its earnings estimates and its price target on Sandisk — up 59% to $1,100 per share. But it was not to last.