On August 14, SanDisk (SNDK.O) unveiled a positive outlook forecast, igniting optimism regarding its long-term profitability, which is being propelled by the AI boom. This, in turn, has spurred a rise in Asian memory chip stocks. Notably, shares of Kioxia Holdings, a key partner of SanDisk, soared by as much as 8.7% on the Tokyo stock market. Meanwhile, shares of memory manufacturer SK Hynix climbed 6.5% in Seoul. The Bloomberg Asia semiconductor stock index also witnessed a significant uptick, rising as much as 1.6% and poised for a fifth consecutive day of gains.

SanDisk anticipates its revenue to expand by 15% to 20% from 2028 to 2030, a growth trajectory driven by long-term pricing agreements with its customers. Andrew Jackson, the head of Japanese equity strategy at Ortus Advisors, remarked that a few years ago, it was exceptionally uncommon for NAND flash memory makers to issue such precise long-term forecasts. He further emphasized that long-term agreements play a crucial role in cushioning against market cyclical volatility, in contrast to the more erratic spot memory prices.