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What's Going On With SanDisk Shares?

Key Takeaways

  • Favorable demand trends have landed SNDK into a Zacks Rank #1 (Strong Buy).
  • The stock helps headline a jam-packed earnings docket this week.
  • Massive growth is being forecasted for its current fiscal year.

SanDisk (SNDK - Free Report) shares have been melting higher over recent months as its role in the broader AI frenzy finally comes into focus. The stock is up more than 170% just over the last three months, by far reflecting one of the strongest moves we’ve seen over the period.

Zacks Investment Research
Image Source: Zacks Investment Research

AI is driving a huge surge in storage demand, which is where SanDisk comes in. NAND prices are rising rapidly, with AI data centers and cloud providers needing more high-speed storage. 

Importantly, the stock is on the reporting docket this week, helping headline a jam-packed week of earnings overall.

SanDisk Expectations Soar

SanDisk’s EPS outlook has shifted notably bullish over recent months, landing the stock into a current Zacks Rank #1 (Strong Buy). The outlook for the upcoming release has shifted notably bullish, with the current $3.54 Zacks Consensus EPS estimate up more than 70% since the beginning of last November.

Revenue expectations have followed a similar bullish path, as seen below.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s top-line acceleration is evident in the quarterly chart below, where sales of $2.3 billion climbed 22% year-over-year in its latest period. Its current fiscal year (ends in June) has also confirmed the favorable demand backdrop, with the current $11.2 billion estimate up nearly 20% over the last year.

Zacks Investment Research
Image Source: Zacks Investment Research

Still, investors should be aware of the steep volatility we’ll likely see following the upcoming release. A weak report/guidance would easily skew sentiment, though it’s worth noting that valuation multiples aren’t stretched to extreme levels by any means, even after the massive run. Shares currently trade at a 22.8X forward 12-month earnings multiple, well below the 2025 high of 42.1X.

Putting Everything Together

A highly favorable demand environment, driven by the AI frenzy, has positioned SanDisk (SNDK - Free Report) in a notably strong position. The company could be at the beginning of a massive growth phase, with its storage solutions a key enabler for AI systems. Current consensus expectations for its current fiscal year allude to a 50% sales growth surge on 450% higher EPS, underpinning the favorable story.

The stock has jumped to a Zacks Rank #1 (Strong Buy) as a result, with its earnings this week set to be a big headliner. Expect some increased volatility post-earnings given the rapid rise, with investors undoubtedly expecting favorable guidance concerning the overall demand picture.


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