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.
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