Quick overview
- Sandisk Corp. closed at $1,753.62 and is currently trading around $1,778, following a remarkable 1,700% increase in the past year.
- The company’s fiscal Q4 results showed significant margin expansion, with non-GAAP EPS of $39.25 and revenue of $8.97 billion, exceeding estimates.
- Sandisk has secured ten new business deals worth at least $93.9 billion, providing multi-year visibility for its operations.
- Analysts remain bullish on Sandisk, with an average price target of $2,136.54, while upcoming earnings from Micron on September 30 could impact market sentiment.
Sandisk Corp. (NASDAQ: SNDK) closed at $1,753.62 yesterday, and is trading around $1,778 today, with shares ranging between $1,742.59 and $1,815.00. The gain comes off a historic run that’s driven the stock up 1,700% in the last 12 months, with memory stocks poised for Micron’s earnings on Sept. 30.
Memory Rally Resumes After a Brief Pullback
Sandisk lost 3.45% on Sept. 24 but returned to pre-market trading on Sept. 25 when AI chip and memory stocks such as Micron and SK Hynix advanced. The rally came after a strong buy signal from a well-known investor who stated, “Sandisk is ‘far from done. Additionally, Reuters has shared a report indicating that SK Hynix subsidiary Solidigm is looking to go public in 2027, bringing renewed focus on the sector’s NAND valuations.
Fiscal Q4 Results Show Extraordinary Margin Expansion
Sandisk’s newest results may provide an explanation for the rally. The fiscal fourth quarter earnings, which were released on August 5, had non-GAAP earnings per share of $39.25 and revenue of $8.97 billion, meeting estimates by 13.5% and 6.5%, respectively. Revenue in the data center business rose 103% sequentially to $2.98 billion, and non-GAAP gross margin increased to 84.6% from 26.4% one year ago. For fiscal Q1 2027, Sandisk expects revenue of $10.3 billion to $10.8 billion and EPS of $44 to $46. However, shares initially fell after hours as expectations were already sky-high.
Long-Term Agreements Provide Multi-Year Visibility
Sandisk has closed ten new business deals totaling a minimum of $93.9 billion, with over four years of visibility. Management anticipates that these deals will make up more than 50 percent of bits shipped in fiscal 2027. The company presented its financial model for fiscal 2028-2030 in its investor day in August and stated it will return 100% of excess cash to shareholders. About $15.5 billion remains under its buyback authorization after $4.5 billion in repurchases last quarter.
Product Roadmap Targets AI Workloads
On the technology side, Sandisk and SK Hynix unveiled the HBF (High Bandwidth Flash) specification for AI inference systems. Sandisk and Kioxia also introduced a new 9th-generation QLC 3D flash design for AI and data-driven devices. Meanwhile, Sandisk is sampling its BiCS10 1Tb TLC NAND, which offers 59% greater bit density than BiCS8.
Analyst Targets and What to Watch Next
Wall Street is bullish, with 21 analysts who rate the stock a Buy and only one analyst who rates it a Sell. The average price target for 12 months is about $2,136.54, signaling approximately 20% upside from the current price and ranging from $1,000 to $3,600. Technically, SNDK is trading about 25% below its 52-week high of $2,354.39. Immediate resistance is near today’s high of $1,815. A break above that level would pave the way to $1900 and potentially $2000. Support is around today’s low at $1,742, with a more solid floor at $1,700. A break below that level would indicate that the pullback is becoming more powerful.
The next big test for sentiment across the sector is Micron’s September 30 earnings report. A strong month could see Sandisk recover to its peak levels, and any evidence of faltering NAND demand could lead to a significant profit-taking month following its phenomenal run.
FAQs
- What is the next major catalyst for Sandisk stock?
Micron’s September 30 earnings report is the next major catalyst. Its results and forward guidance could influence sentiment across the memory sector, including Sandisk.
- What are the key support and resistance levels for SNDK?
SNDK faces immediate resistance near $1,815, followed by $1,900 and the $2,000 mark. Support sits around $1,742, with a stronger level near $1,700.
Bottom Line
Sandisk’s rally reflects strong earnings, expanding margins, long-term business agreements, and growing demand for AI-related memory. However, after a gain of more than 1,700% over 12 months, expectations remain high. Micron’s upcoming results could provide fresh momentum, while weaker NAND demand or disappointing guidance could trigger profit-taking.
Arslan Ali Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Ali Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
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