Sandisk (SNDK) reported revenue of $11.0 billion, up 378% from a year earlier and above the $10.7 billion expected, guided second-quarter revenue to $12.2–$12.6 billion, and announced an 8-for-1 stock split. The stock still fell 12% to about $1,167, alongside sharp drops at Intel (down 29%) and Amazon (down 7%) amid concerns about PC demand and AI spending. Gross margin reached 85%, and long-term agreements cover about half of this fiscal year's output, with price floors. The article says the stock trades at 5.8x forward earnings versus an 11x average over the past year, arguing the price reflects a downturn scenario. It adds that the contracts make the worst case harder to reach, though a floor price is not the same as an 85% margin.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SanDiskmemory chipssemiconductorsearningsstock split
Open a keyword to see other news on the same topic.
Related news
- Why Sandisk Stock Plunged Today
Sandisk shares fell as much as 11% on Friday despite fiscal first-quarter results that beat expectations. Revenue surged 378% year over year to $11 billion, above the $10.7 billion consensus, and adjusted EPS came in at $49.51 versus $46.67 expected. Data center revenue jumped 1,682% to $4.8 billion, and edge computing revenue reached $5.8 billion. The company guided second-quarter revenue to $12.4 billion and announced an 8-for-1 stock split, but investors worry about AI memory demand, consumer spending, and a ceiling on memory prices. The author calls the stock a bargain at 16 times earnings.
- Sandisk Stock Rebounds 6 % to Snap Seven - Day Losing Streak as Memory Chipmakers Recover From CXMT Fears
Sandisk shares rose 6.48% to $1,383.49 in Monday morning trading on the Nasdaq, ending a seven-session losing streak that began Oct. 8. The rebound came as memory chip stocks recovered from a sell-off driven by fears that China's CXMT is advancing its chip technology faster than expected, which could boost global supply and pressure prices. Some analysts argue the threat to Sandisk is overstated, since CXMT's advances mainly concern DRAM while Sandisk focuses on NAND flash. Even after the gain, the stock remains about 40% below its record close of $2,335 in late June, though it is up nearly 780% over the past year on AI data center memory demand. Of 17 analysts covering it, 15 rate it Buy and two rate it Hold, with an average target of about $2,206; the company reports quarterly results on Oct. 29.
- Stock-Split Watch: Is ASML Next?
ASML shares have gained 189% over the past three years, trailing the 247% rise in the PHLX Semiconductor Sector index, and now trade above $1,600 per share. The article argues that management could carry out a forward stock split to make the shares more attractive to retail investors, though this would not change the company's fundamentals, and many brokerages now offer fractional share purchases. In the third quarter, ASML reported revenue of 11.66 billion euros, up 55% year over year, after selling 113 lithography systems versus 66 a year earlier, with EUV machines used for AI chips driving the gains. The company expects 14.7 billion euros in revenue this quarter, a 51% increase, and plans to raise advanced chipmaking equipment capacity by 30% in 2027. Customers are reportedly interested in orders for 2029 and 2030, and ASML trades at 27 times forward earnings, below its five-year average of 33.
- Sandisk stock slumps despite solid earnings beat. Is memory losing momentum?
Barron's associate editor Al Root joins hosts Julie Hyman and Jake Conley to discuss Sandisk's (SNDK) latest earnings and stock move. The company beat expectations on both revenue and profit, and data center sales beat again, though operating cash flow was a slight miss. The shares still fell, and the panel attributed much of the weakness to broader market moves, including Intel's sharp decline and Microsoft closing lower the previous day. Kioxia's below-estimate profit outlook, and easing growth in memory and flash prices after several quarters of rapid gains, raised doubts about how long the memory cycle will last.
- SNDK Tumbles Amid Tech Selloff Despite Upbeat Q1 Report; Retail Turns Bullish
SanDisk (SNDK) fell more than 4% in overnight trading despite fiscal first-quarter revenue soaring 380% to US$11.03 billion, above the US$10.72 billion analysts expected, and adjusted profit of $49.51, up from $46.67. The company raised Q2 revenue guidance to US$12.6 billion from US$12.2 billion. The drop followed a broader chip and AI infrastructure selloff after mixed reports from Intel and Amazon, with Western Digital and Seagate each down about 6%, Micron down over 4%, and SK Hynix down more than 8% in Seoul. The article links the move to investors taking profits after a sharp rally, as SNDK had gained 460% year to date. The 8-for-1 stock split takes effect Nov. 19, and retail sentiment on Stocktwits shifted to 'extremely bullish'.
- Sandisk sees revenue nearly quintuple — and its stock is heading higher
Sandisk's earnings show that the company is growing quite profitably. The article does not give detailed figures.
Related markets
Latest news
- Alphabet's October wipeout hits $766 billion, its worst month ever
Alphabet (GOOGL) lost $477 billion in market value for the week through Friday's low, its worst week ever, after shares plunged $475 billion in one session on Thursday following third-quarter results. For October, the stock had shed about $766 billion at its low, second only to SpaceX's roughly $822 billion loss in July, and was down nearly 19% for the month, its steepest monthly drop since the 2004 IPO. Other megacaps also fell sharply, with Intel sliding as much as 30% after a weak outlook and Amazon losing about $70 billion for the week, while Eli Lilly, Tesla and SK Hynix added about $370 billion combined. UBS's chief investment office argued that retreating from markets does not protect portfolios and that investors should build resilient portfolios with exposure beyond tech. Alphabet closing at or below $280.50 on Friday would lock in its worst month since the IPO in percentage terms.
- Binance hack: Investigators in a 'cat and mouse game' to recover $6.3 billion in stolen funds
Crypto firms and law enforcement are racing to recover more than $6 billion in cryptocurrency stolen from Binance, which says its Secure Asset Fund for Users will cover losses. TRM Labs and Chainalysis have attributed the hack to the North Korea-linked group TraderTraitor, and stablecoin issuers such as Circle and Tether have frozen around $3 billion so far. The hackers reportedly sold USDT and borrowed ether against it, since ether is harder to freeze, and moved funds back and forth between wallets and to Tron addresses to obscure their trail. Investigators also see growing use of professional money laundering networks linked to China, which buy crypto off-chain and return it as stablecoins or fiat, making recovery harder the further funds travel. Chainalysis says it now has automated tools to track the funds, and TRM Labs says its tracing is improving.
- Tesla-SpaceX Merger Could Face The Biggest Regulatory Risk In China, BofA Warns
Bank of America said a potential Tesla–SpaceX merger could face its biggest regulatory challenge in China, given Tesla's reliance on its Shanghai plant and SpaceX's ties to the US defense industry. Under the all-stock deal BofA described, the Shanghai factory, which makes roughly half of Tesla's global output, would come under a major US defense contractor, raising possible national security concerns. Tesla says the plant has an installed annual capacity above 950,000 vehicles. BofA said it believes Tesla's special committee can likely negotiate a premium, and it kept its 'Buy' rating and $460 price target on Tesla. At the time of writing SPCX was down more than 5% and TSLA 1.8%, with TSLA down 9% in 2026 and SPCX near its $135 IPO price after a sharp sell-off this month.
- 2 mega-cap stocks with exciting potential and 1 we avoid
StockStory's article picks two megacap stocks with attractive long-term potential and flags one to be cautious about. Walmart (WMT), with a $962 billion market cap, is described as having revenue growth of 5.3% a year over the past three years, lagging other consumer retail companies, and a 24.9% gross margin that depends on higher volumes, along with weak operating margins. Its shares trade at $123.24, or 39.5x forward P/E. Microsoft (MSFT), with a $3.94 trillion market cap, is cited for top-tier gross margins, improving profit margins and strong free cash flow, and trades at $529.25 per share, or 25.6x forward P/E. The article also lists AMD (AMD) with a $924.7 billion market cap, with no further details about the stock in the text.
- META, AMZN, ORCL, GOOGL in focus: Big Tech bonds offer better opportunity than stocks, BofA says
BofA chief investment strategist Michael Hartnett says investment-grade bonds from mega-cap tech firms offer better value than their stocks. Borrowing costs have risen amid concern over heavy capital expenditures by hyperscalers such as Meta, Google, Amazon and Oracle to build generative AI infrastructure. Yields on investment-grade tech debt range from 6% to 8%, with Oracle above 8% and Meta and Amazon at 6.8% to 7.4%. Meta is raising $95 billion through stock offerings, which Hartnett says is negative for existing shareholders and suggests the era of large buybacks may be ending. Year to date, META is down 6%, GOOGL about 10%, AMZN up 3% and ORCL about 33%.
- Why bitcoin held up better after the record Binance hack
Binance suffered the biggest hack in crypto history, with about $6.3 billion affected, and security firm TRM Labs linked the incident to North Korea. Bitcoin dipped to $77,065 at 1:34 p.m. ET on Friday, down about 4% on the day, while data from Anchorage Digital showed bitcoin fell 8.3% on average in the first 24 hours after past exchange exploits. Sam Callahan of OranjeBTC and Spencer Hallarn of GSR said the breach was a security failure at a centralized exchange, not a failure of the bitcoin network, and that bitcoin has moved in step with other risk assets amid concerns over AI-related earnings. David Lawant of Anchorage Digital noted that only 6% of bitcoin is held in ETFs, suggesting many holders take a longer-term view.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.