SanDisk Stock Set to Soar
SanDisk looks ready to move now that the flash memory the company makes is finally overtaking disk drives as the memory of choice in the semiconductor market, Cramer said.
Cramer found his first clues this was happening after SanDisk reported a stellar second quarter in July. Even Chairman and CEO Dr. Eli Harari admitted during a call today on Mad Money that it was an “exciting time” for an industry that’s enjoying a “torrid pace of innovation.”
“There’s no question about it,” Harari said. “Flash memory today is the fastest-growing market in the semiconductor industry. There’s no other market that even comes close. And we don’t see an end in sight, certainly not in the next three to five years.”
Harari said flash memory has dropped 80% in price over the past six quarters, and that has led to a “phenomenal impact on the acceleration of new markets” like the video iPod and smartphones.
SanDisk reminds Cramer of the type of high-growth stock that rallied while JPMorgan and Citigroup were cut in half in 1990. If investors see the same parallels between then and now, then SNDK is a stock they might want to own.
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