šKorean Brokers Turn Bearish, While SK Deepens Its Kioxia Ties: Whatās Next for SNDK?
Memory stocks are sending two very different signals today:
Brokers are starting to price in a cycle peak, while industry ties are getting even tighter.
š Why Are Korean Brokers Turning Bearish?
Kiwoom cut its SK hynix target price from KRW 2.2M to KRW 2.1M, while Samsung Electronics was cut from KRW 390K to KRW 350K.
The concern is not 2026 earnings. It is what happens after 2027.
The market is starting to ask:
If memory prices stay this high and new capacity comes online, are we approaching another peak-out?
NAND margins have already recovered sharply for several quarters. That is exactly why investors are now questioning how long these elevated profits can last.
š¤ But SK and Kioxia Are Getting Closer
At the same time, Toshiba continued reducing its Kioxia stake to 14.12%.
BCPE Pangea Cayman2, backed by SK hynix, now holds about 14.19%, making it Kioxiaās largest shareholder.
SK does not directly control Kioxia, but one thing is clear:
SKās influence around Kioxia is increasing.
š¾ What Does This Mean for $SanDisk Corp.(SNDK)$ $Tradr 2X Long SNDK Daily ETF(SNXX)$ ?
For SNDK, I see the development as neutral to slightly positive in the short term.
Sandisk and Kioxia are already deeply tied through NAND production, and their Yokkaichi JV agreement has been extended through 2034.
If SK and Kioxia become even more closely aligned, the market may start pricing in another possibility:
Stronger industry ties could mean better supply discipline and less aggressive capacity expansion.
That would not be bad for SNDK.
š The Real Risk Is 2027 Supply
The bigger issue for SNDK is not SK itself.
It is whether new NAND supply in 2027 grows faster than AI data-center and enterprise SSD demand.
If NAND pricing stays firm and AI orders keep growing, this is still an expectation reset, not a fundamental reversal.
But if pricing starts rolling over, then the Korean brokersā āpeak-outā call may prove right.
š Editorās View
The contradiction is simple:
Brokers are pricing in the next downturn, while industry players are still becoming more tightly connected.
For now, I would not turn bearish on SNDK just because target prices are being cut.
This still looks more like an expectation reset than the end of the memory cycle.
[Allin]Questions for Tigers:
Do you think the storage market is bearish in the short term?
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