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Buy AI-Driven SNDK and AMKR to Benefit From Recent Stock Price Debacle
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Key Takeaways
Sandisk's AI storage exposure is expanding, with datacenter bit mix reaching 38% in fiscal 2026.
Amkor's computing revenue rose 26% year over year, driven by accelerating AI and HPC packaging demand.
Amkor expects third-quarter sales of $1.95-$2.05 billion as its HDFO data center CPU program ramps.
The global semiconductor manufacturing equipment and materials industry is growing by leaps and bounds, buoyed by artificial intelligence (AI)-driven capital expenditure in leading-edge logic, high-bandwidth memory (“HBM”) and Test and Packaging components.
Moreover, the enormous application of AI in day-to-day life has pushed up the demand for memory chips. This has resulted in more AI semiconductor sales, implying the need for multiple AI memory chips to operate.
Here, we have selected two AI-powered infrastructure stocks that have suffered a sharp downtrend in the past month. However, their strong business model, solid estimate revisions and a favorable Zacks Rank will enable these stocks to remain on their northward trajectory.
The chart below shows the price performance of our two picks in the past month.
Image Source: Zacks Investment Research
Sandisk Corp.
Sandisk — a leading flash and advanced memory technology innovator — has benefited from the structural shift toward AI computing, which requires significantly more NAND flash storage per deployment compared with traditional workloads.
AI training models and inference applications generate massive data volumes that demand high-performance enterprise solid-state drives, while edge devices need greater storage capacity to support on-device AI features. This creates a favorable demand environment where SNDK can command premium pricing for its advanced technology products while maintaining disciplined supply allocation.
Expansion in AI Storage Exposure
SNDK has New Business Model agreements with eight Datacenter and Edge customers, with a weighted average duration above four years. Those agreements are expected to cover more than 50% of fiscal 2027 bits and roughly two-thirds of fiscal 2028 bits.
Datacenter exited fiscal 2026 at 38% of Sandisk's bit mix, up from roughly 12% a year earlier, as enterprise SSD adoption broadened. This has resulted in a shift to AI inference, where expanding models, longer context lengths and agentic AI workloads increase storage requirements. Sandisk also began revenue shipments of its QLC Stargate platform.
Strong Guidance
SNDK guided fiscal first-quarter 2027 revenues of $10.3-$10.8 billion and non-GAAP EPS of $44-$46, with growth from both higher bits and modest price increases. Non-GAAP gross margin is expected at 83-85%.
Management continues to expect margins around 80% in the near future, with upside when pricing rises. Sandisk expects the NAND market to exceed $300 billion in calendar 2026 and approach $500 billion in 2027, with customer demand growing faster than supply.
Solid Estimate Revisions
Sandisk has an expected revenue and earnings growth rate of more than 100%, each, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last seven days.
SNDK has an expected revenue and earnings growth rate of 15.6% and 2.3%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 9.1% over the last seven days.
Image Source: Zacks Investment Research
Massive Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 59.6% from the last closing price of $1,344.29. The brokerage target price is currently in the range of $1,300-$3,169. This indicates a maximum upside of 135.7% and a downside of 3.3%.
Amkor Technology Inc.
Amkor has been benefiting from accelerating AI and HPC packaging demand. Computing revenue was reported at a record level in the second quarter of 2026, up approximately 26% year over year, and is expected to grow nearly 30% sequentially in the third quarter of 2026 as the newest HDFO data center CPU program continues to ramp.
AMKR’s Advanced products were reported at $1.557 billion, up 26.79% year over year, reflecting a sustained mix shift toward higher value offerings. Automotive and Industrial revenue also reached a record level, supported by ADAS demand and increasing semiconductor content in next-generation vehicle platforms.
AI-Fueled Growth
Management pointed to accelerating Computing growth of nearly 30% sequentially in the third quarter, driven by AI-powered data center demand and the continued ramp of the HDFO CPU program, partly offset by a high single-digit sequential decline in Communications tied to the planned SiP transition from Korea to Vietnam and the ongoing memory supply constraints.
Recently announced 10-year strategic partnerships with Taiwan Semiconductor Manufacturing Co. Ltd. (TSM - Free Report) and a multi-year agreement with NVIDIA Corp. (NVDA - Free Report) are reinforcing the company's long-term advanced packaging growth trajectory.
Strong Guidance
For the third quarter of 2026, AMKR expects net sales of $1.95-$2.05 billion and a gross margin of 18.5-19.5%. Net income is expected to be $180-$205 million, with EPS between $0.72-$0.82.
Full-year 2026 capital expenditures are projected at approximately $2.5-$3 billion, with roughly 65% to 70% allocated to facilities expansion, including Phase 1 of the Arizona campus and 30% to 35% allocated to HDFO, test and other advanced packaging capacity.
Solid Estimate Revisions
Amkor has an expected revenue and earnings growth rate of 14% and 74.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 26% over the last 30 days.
AMKR has an expected revenue and earnings growth rate of 11.8% and 4.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 26.4% over the last 30 days.
Image Source: Zacks Investment Research
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 34.9% from the last closing price of $55.59. The brokerage target price is currently in the range of $60-90. This indicates a maximum upside of 61.9% and no downside.
View the Zacks #1 Rank List
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Buy AI-Driven SNDK and AMKR to Benefit From Recent Stock Price Debacle
Key Takeaways
The global semiconductor manufacturing equipment and materials industry is growing by leaps and bounds, buoyed by artificial intelligence (AI)-driven capital expenditure in leading-edge logic, high-bandwidth memory (“HBM”) and Test and Packaging components.
Moreover, the enormous application of AI in day-to-day life has pushed up the demand for memory chips. This has resulted in more AI semiconductor sales, implying the need for multiple AI memory chips to operate.
Here, we have selected two AI-powered infrastructure stocks that have suffered a sharp downtrend in the past month. However, their strong business model, solid estimate revisions and a favorable Zacks Rank will enable these stocks to remain on their northward trajectory.
These stocks are: Sandisk Corp. (SNDK - Free Report) and Amkor Technology Inc. (AMKR - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our two picks in the past month.
Image Source: Zacks Investment Research
Sandisk Corp.
Sandisk — a leading flash and advanced memory technology innovator — has benefited from the structural shift toward AI computing, which requires significantly more NAND flash storage per deployment compared with traditional workloads.
AI training models and inference applications generate massive data volumes that demand high-performance enterprise solid-state drives, while edge devices need greater storage capacity to support on-device AI features. This creates a favorable demand environment where SNDK can command premium pricing for its advanced technology products while maintaining disciplined supply allocation.
Expansion in AI Storage Exposure
SNDK has New Business Model agreements with eight Datacenter and Edge customers, with a weighted average duration above four years. Those agreements are expected to cover more than 50% of fiscal 2027 bits and roughly two-thirds of fiscal 2028 bits.
Datacenter exited fiscal 2026 at 38% of Sandisk's bit mix, up from roughly 12% a year earlier, as enterprise SSD adoption broadened. This has resulted in a shift to AI inference, where expanding models, longer context lengths and agentic AI workloads increase storage requirements. Sandisk also began revenue shipments of its QLC Stargate platform.
Strong Guidance
SNDK guided fiscal first-quarter 2027 revenues of $10.3-$10.8 billion and non-GAAP EPS of $44-$46, with growth from both higher bits and modest price increases. Non-GAAP gross margin is expected at 83-85%.
Management continues to expect margins around 80% in the near future, with upside when pricing rises. Sandisk expects the NAND market to exceed $300 billion in calendar 2026 and approach $500 billion in 2027, with customer demand growing faster than supply.
Solid Estimate Revisions
Sandisk has an expected revenue and earnings growth rate of more than 100%, each, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last seven days.
SNDK has an expected revenue and earnings growth rate of 15.6% and 2.3%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 9.1% over the last seven days.
Image Source: Zacks Investment Research
Massive Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 59.6% from the last closing price of $1,344.29. The brokerage target price is currently in the range of $1,300-$3,169. This indicates a maximum upside of 135.7% and a downside of 3.3%.
Amkor Technology Inc.
Amkor has been benefiting from accelerating AI and HPC packaging demand. Computing revenue was reported at a record level in the second quarter of 2026, up approximately 26% year over year, and is expected to grow nearly 30% sequentially in the third quarter of 2026 as the newest HDFO data center CPU program continues to ramp.
AMKR’s Advanced products were reported at $1.557 billion, up 26.79% year over year, reflecting a sustained mix shift toward higher value offerings. Automotive and Industrial revenue also reached a record level, supported by ADAS demand and increasing semiconductor content in next-generation vehicle platforms.
AI-Fueled Growth
Management pointed to accelerating Computing growth of nearly 30% sequentially in the third quarter, driven by AI-powered data center demand and the continued ramp of the HDFO CPU program, partly offset by a high single-digit sequential decline in Communications tied to the planned SiP transition from Korea to Vietnam and the ongoing memory supply constraints.
Recently announced 10-year strategic partnerships with Taiwan Semiconductor Manufacturing Co. Ltd. (TSM - Free Report) and a multi-year agreement with NVIDIA Corp. (NVDA - Free Report) are reinforcing the company's long-term advanced packaging growth trajectory.
Strong Guidance
For the third quarter of 2026, AMKR expects net sales of $1.95-$2.05 billion and a gross margin of 18.5-19.5%. Net income is expected to be $180-$205 million, with EPS between $0.72-$0.82.
Full-year 2026 capital expenditures are projected at approximately $2.5-$3 billion, with roughly 65% to 70% allocated to facilities expansion, including Phase 1 of the Arizona campus and 30% to 35% allocated to HDFO, test and other advanced packaging capacity.
Solid Estimate Revisions
Amkor has an expected revenue and earnings growth rate of 14% and 74.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 26% over the last 30 days.
AMKR has an expected revenue and earnings growth rate of 11.8% and 4.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 26.4% over the last 30 days.
Image Source: Zacks Investment Research
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 34.9% from the last closing price of $55.59. The brokerage target price is currently in the range of $60-90. This indicates a maximum upside of 61.9% and no downside.