SanDisk Corporation (SNDK): Strengthen Your Portfolio’s Memory With This Company

Apart from the company’s strength in DRAM, Micron Technology, Inc. (NASDAQ:MU), in its last quarter, reported an 8% increase in the price of NAND flash memory, which led to an overall growth of 12% in the company’s revenue. The DRAM industry is shifting from PCs to other devices such as mobiles, servers and automation. Micron Technology seems well placed to benefit from the shift as it witnessed record shipments in these areas. In short, Micron Technology, Inc. (NASDAQ:MU) is also going strong and seems to be well equipped to benefit from the future.

Samsung is another major player in NAND flash memory chips and SSD market. It has come up with some new SSDs recently, which is expected to bring momentum in transition to SSDs from comparatively cheaper NAND flash. Samsung itself being the largest player in the smartphone market can gauge the expected growth of the SSD market. In 2013, the demand for SSDs will grow handsomely by 75% compared to last year. Further, according to IHS, the market for SSDs will be around $22.6 billion by 2016, compared to a $7 billion market last year.

Samsung is a recognized smartphone company, which represents its core business. It currently dominates the smartphone industry with an array of phones suiting all price points. The company is trying to grow its storage device business because it offers better prospects and margins, which seems to be reducing in the smartphone business due to increased competition. Samsung very well knows how to dominate the market and with its own PC and smartphones as a  major client for its storage device business, its all set to perform well.

Final words

SanDisk Corporation (NASDAQ:SNDK) is going strong and will be benefited in the future, as it is operating in a globally growing industry. Globally, consumer storage is expected to grow from 329 exabytes in 2011 to 4.1 zettabytes in 2016, and the average storage per household should reach 3.3 terabytes in 2016 from a figure of 464 gigabytes in 2011. SanDisk is expected to derive great benefit from the growth in the industry and thus the revenue outlook of $1.53 billion to $1.58 billion, seems achievable. Moreover, the margins are also going strong and are expected to boost in the coming quarters.

As Warren Buffet says, “Bet on sure things,’’ and SanDisk Corporation (NASDAQ:SNDK) is one of the safest and surest bets an investor can make at the moment.

The article Strengthen Your Portfolio’s Memory With This Company originally appeared on Fool.com and is written by tarun bachhawat.

tarun bachhawat has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. tarun is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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