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Barclays Upgrades $SNDK to Overweight, Raises PT to $2,300 from $1,200 Analyst comments: "Sandisk has been the most aggressive and structurally innovative in its contracting approach. Its New Business Models, or NBMs, discussed at the most recent earnings, are said to provide the company with demand certainty and customers with supply assurance. The contracts vary in length, with the longest reaching into 2031, and are based on quarterly volume commitments that increase during the life of the contract, with a combination of fixed pricing in the short term and variable pricing in the long term. Variable pricing allows the company to capture upside if prices increase. The three contracts signed in the most recent quarter provide minimum contractual revenue of ~$42B. Each contract is secured with financial guarantees that, in total, among the five contracts already signed, exceed $11B. Of the >$11B, there is a portion that is in prepayments; SNDK recognized $400M in prepayment on the balance sheet in FQ3, and the remaining is made up of financial instruments that are managed by third-party institutions, which are triggered and delivered to SNDK if there is a breach in contract. These are the most desired contract types in the ecosystem today, giving customers supply visibility and SNDK guaranteed revenue and more confidence in their market outlook. We think this type of contract fundamentally changes the way memory players can decide and allocate business, making their environment much more secure and protected on the downside."

I recently spent 2 weeks in China. 6 cities: Shanghai, Beijing, Xi’an, Zhangjiajie, Chongqing and Chengdu. I went there with curiosity. Like many Indians, I had heard a lot about China through media, social media and conversations. I expected to see progress, maybe discover some business ideas, and understand what the country is actually building. I came back with a very uncomfortable feeling. Not because I found a business idea for myself. But because I saw 100 things that governments can do when infrastructure, tourism, transport, urban planning and civic systems are treated seriously. I travelled within China by flights, trains, cars and local transport. The infrastructure was honestly stunning. Clean cities. Smooth roads. High-speed trains. Well-managed traffic. Public spaces that actually feel designed for people. Tourist destinations that are built, maintained and promoted like national assets. And then I kept thinking about India. We keep comparing ourselves to China. Our media keeps telling us how India is catching up, how China is restrictive, how we are better in so many ways. After spending time there and speaking to people, I realised how much of that narrative is just comfort food. China is not perfect. No country is. But on infrastructure, execution, tourism, civic discipline and quality of urban life, they are not 5 years ahead of us. They are decades ahead. The saddest part for me was the currency. Everything felt expensive. Not because China was insanely expensive, but because the rupee has weakened so much that even normal spending starts feeling heavy. As an Indian taxpayer, that genuinely hurt. We pay taxes. We work hard. We talk about becoming a global power. But where is the quality of life? Where is the civic sense? Where is the infrastructure that makes daily life easier? Where is the tourism vision beyond religious tourism? I met travellers from other countries who were excited to visit China because they wanted to see its progress. When I asked about India, many had no real desire to visit. Not out of hate. India simply was not on their aspirational travel list. That should bother us. Even the so-called “closed internet” surprised me. We are told people there are missing out because they don’t use Google, Instagram, WhatsApp or Facebook. But China has built its own digital ecosystem. Payments, maps, transport, messaging, shopping, everything works inside their own infrastructure. People did not seem to feel deprived. They seemed adapted. Again, this is not a hate post. I love India. That is exactly why this trip bothered me. Patriotism cannot only be about saying we are great. Real patriotism is having the courage to admit where we are falling behind. China made me realise one thing very clearly: India’s potential is not the problem. Execution is. And unless we stop comforting ourselves with comparisons and start demanding better infrastructure, better governance, better tourism, cleaner cities and a higher quality of life, we will keep celebrating the idea of progress instead of actually living it.

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