AI and tech stocks have been sold off on hotter-than-expected inflation, higher interest rates, financing concerns and heavy AI infrastructure spending by hyperscalers that is weighing on their cash flow. Sandisk (SNDK) fell more than 13% after its fiscal first-quarter 2027 report, even though revenue jumped 378% year over year to $11.03 billion and non-GAAP EPS rose to $49.51 from $1.22. The company expects about $12.4 billion in revenue and $56.00 EPS next quarter, above analyst estimates of $12.29 billion and $54.69. Analysts expect fiscal 2027 EPS to rise 220% to $226.85, and a 12-month median price target of $2,167 implies 88% gains. The stock trades at 9 times earnings versus 23 for the S&P 500, and the author estimates that at 15 times the $226.85 EPS, the price could reach $3,403, nearly 3x its current level.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Prediction: This Will Be Sandisk’s Stock Price After 1 Year
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Sandisk reported fiscal Q1 revenue up 23% sequentially to $11.0 billion and announced an eight-for-one stock split, with split-adjusted trading expected from Nov. 20. Adjusted EPS rose 26% sequentially to $49.51, and data center revenue jumped 61% to $4.8 billion. The author notes that about 60% of the sequential revenue gain came from more storage shipped and 40% from higher prices, and that fiscal Q2 guidance implies slower growth of about 12%. At around $1,150 per share, the stock trades at about 5 times the author's estimate of annualized guided earnings, and the author says he would be comfortable starting a small position at this price. He cautions that memory profits can fall quickly if prices drop.
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Sandisk (SNDK), which makes NAND memory chips, has risen nearly 500% this year and ranks second in the S&P 500 for gains, as data center build-outs drove demand that absorbed all available production capacity. The company is shifting to a 'New Business Model' (NBM) of contracts with some clients that set a price floor and ceiling and commit volumes, which the author says makes future cash flows more predictable and could reduce cyclical swings. The author argues the stock is still priced as if a cyclical downturn is coming, at 6.3 times forward earnings, and that the shift to contract-based work could lift its valuation premium. The author concludes the opportunity is compelling enough to consider buying shares now, before the market reflects this transformation.
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Sandisk (SNDK) stock has risen 3,700% since its formal separation from Western Digital in February 2025. The gain was driven by surging demand for flash storage from AI data centers, inclusion in the Nasdaq-100 and S&P 500, and net income of over $11 billion in fiscal 2026, compared with a $1.6 billion loss the year before. With a P/E ratio of 19 and a forward P/E of 6.3, the article notes that memory and storage stocks have historically faced sharp sell-offs once booms end, so investors should approach the stock with caution. The author says the stock is more likely to pull back than rise over time, though it could keep climbing if revenue forecasts prove accurate.
- Sandisk Is Splitting Its Stock 8-for-1. History Says What Usually Happens to Stocks After a Split Announcement.
Sandisk reported fiscal first-quarter revenue of $11.0 billion, up 23% from the prior quarter, and its board approved an eight-for-one stock split, with split-adjusted trading expected to start November 20. Looking at eight big-name split announcements, five stocks were higher a year later, with a median gain of about 26% and results ranging from a 43% drop to a 79% gain. The author argues that where a stock stood against its 52-week high mattered more than the split itself, and the two that announced well below their highs, Amazon and Netflix, performed worst. Sandisk closed at about $1,330 on October 29, 43% below its record close of $2,335 on June 25, though it is still up about 551% from a year earlier. The author also notes that growth is slowing and that flash prices may matter more than the split.
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