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Can PC Refresh Cycle Drive Edge Segment Growth for SNDK Stock?

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Key Takeaways

  • Windows 10 end-of-support deadline is driving enterprises and consumers to upgrade aging PC fleets rapidly.
  • SNDK's edge segment revenues reached $1.39B in fiscal Q1, up 30% YoY and representing 30% of total sales.
  • Zacks Consensus Estimate pegs fiscal 2026 revenues at $10.45B, indicating 42.07% year-over-year growth.

Sandisk (SNDK - Free Report) appears well-positioned to capitalize on an accelerating PC refresh cycle driven by Windows-11 adoption and the approaching Windows-10 end-of-support deadline. This transition is compelling enterprises and consumers to upgrade aging PC fleets. Industry expectations point to low single-digit growth in PC unit shipments during 2026, while average NAND capacity per device is projected to increase at mid-single-digit rates. This mix shift creates a compounding effect for NAND demand, reflecting a structural trend where content growth matters more than unit growth.

This PC upgrade momentum is translating into tangible results for Sandisk’s edge segment, which serves original equipment manufacturers and channel customers with flash solutions for computing devices. Edge revenue reached $1.39 billion in the first quarter of fiscal 2026, representing 30% of total revenues and growing 30% year over year. The expansion appears to be driven by higher storage content per system rather than pricing dynamics, pointing to healthier underlying demand as PC configurations continue to migrate toward larger-capacity Solid-State Drives (SSD).

Sandisk’s technology roadmap further supports this cycle. BiCS8 accounted for 15% of total bits shipped in the first quarter and is expected to reach majority production by the fiscal year-end. The transition to higher-layer NAND improves cost efficiency while enabling higher-density client SSDs. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $10.45 billion, up 42.07% year over year. As the PC refresh cycle continues to lift NAND content per device, it is emerging as a sustained driver of edge segment growth and a meaningful contributor to Sandisk’s broader revenue expansion trajectory.

SNDK Faces Stiff Competition

Sandisk faces competition from Western Digital (WDC - Free Report) and Micron Technology (MU - Free Report) in capturing PC refresh demand.

Western Digital maintains strong client storage positioning with established original equipment manufacturer relationships and a broad solid-state drive portfolio. Western Digital has been transitioning toward higher-layer NAND architectures to improve cost efficiency and capacity offerings for the PC market. However, Sandisk's solid-state drive market share and BiCS8 technology advancement position the company competitively against Western Digital in the ongoing refresh cycle.

Micron Technology has been actively engaging with the Windows upgrade cycle through its PC and graphics business segment. The company's competitive advantage stems from its integrated DRAM and NAND portfolio, offering bundled memory solutions for PC manufacturers seeking simplified supply chains. While Micron Technology benefits from its diversified memory offerings, Sandisk's focused NAND expertise and BiCS8 technology demonstrate strong competitive positioning in capturing PC refresh opportunities.

SNDK’s Share Price Performance, Valuation & Estimates

Sandisk shares have appreciated 817.7% in the trailing six-month period, outperforming the broader Zacks Computer and Technology sector’s return of 20.2%.

SNDK Stock Outperforms Sector

Zacks Investment Research
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The SNDK stock is trading at a forward 12-month price/sales of 4.8X compared with the Zacks Computer-Storage Devices’ 7.49X. Sandisk has a Value Score of F.

SNDK Valuation

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $13.46 per share, up by 7% over the past 30 days. Sandisk reported earnings of $2.99 per share in fiscal 2025.

Sandisk currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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