Sandisk (SNDK)
NASDAQInformation TechnologyComputer HardwareSnapshot 2026-07-07
$1617.70-7.26%
Close 2026-07-07 · 1-day change
Reading SNDK? This analysis is rebuilt every market day. Get it tracked free. No credit card.
Track SNDK free→NASDAQInformation TechnologyComputer HardwareSnapshot 2026-07-07
Reading SNDK? This analysis is rebuilt every market day. Get it tracked free. No credit card.
Track SNDK free→Sandisk is growing fast with datacenter revenue up 233% sequentially in Q3 2026. The company expects revenue near $8 billion and EPS around $31.5 next quarter. It has a $6 billion share buyback program supporting shareholder value. The AI memory boom and shift to higher-value markets support durable growth.
The stock has sold off sharply, down over 30% from its high. There are concerns about a memory market glut and cooling AI demand. Valuation is high with a P/E near 52, raising risk if growth slows. Competition and market conditions could pressure revenue and margins.
The market price is about 54% above our valuation estimate and 25% below the Street median. This reflects strong growth expectations and premium valuation. Our view is more cautious on sustaining the current rapid growth and margin levels.
Breaks if: sequential datacenter revenue growth falls below 100% in Q4 2026
Focus on transitioning to higher-value end markets, particularly in Datacenter.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 3 of last 3 quarters. Datacenter revenue grew 233% sequentially in 2026-Q3, indicating strong progress in shifting to higher-value end markets. The trajectory is delivering on management's stated priority.
“CEO: 'Our technology leadership is enabling a deliberate shift in our mix toward the highest-value end markets, led by Datacenter.'”
“CEO: 'Our structural reset to align supply with attractive, sustained demand positions us to drive disciplined growth.'”
“CEO: 'Customers are turning to Sandisk for our leading technology and products, which are exceptionally well positioned.'”
Breaks if: reported EPS falls below $30.0 in Q4 2026
Breaks if: Buyback program is suspended or materially delayed
Initiate a $6 billion share repurchase program to enhance shareholder value.
Breaks if: reported revenue falls below $7.75B in Q4 2026