TLDR
- SanDisk (SNDK) hit an all-time high of $753.69 on Wednesday, March 18
- The stock dipped ~5% in pre-market Thursday following Micron’s earnings, not any SanDisk-specific news
- Q2 FY2026 EPS came in at $6.20, beating the $3.49 estimate — a 77.65% earnings surprise
- Revenue hit $3.03 billion, topping the $2.67 billion forecast by 13.48%
- Western Digital offloaded ~5.8 million SNDK shares at $545 each in a secondary offering worth ~$3.09 billion
SanDisk had quite a Wednesday. The stock closed at an all-time high of $753.69 — up over 1,200% in the past year — before pulling back roughly 5% in pre-market trading Thursday.
The drop had nothing to do with SanDisk directly. Micron reported earnings that triggered a sector-wide selloff across chip stocks. Investors often adjust positions across an entire space when one major player reports, and memory stocks felt the pressure.
SanDisk was spun off from Western Digital in February 2026. Since then, it has leaned into the AI storage boom with a focused strategy that differs from some of its larger peers.
One key difference right now: while Micron announced heavy capital expenditure plans to build out new factories, SanDisk is past the bulk of its infrastructure spending. That lets the company keep margins tighter and focus on profitability rather than construction costs.
Strong Q2 Numbers Drive Investor Confidence
SanDisk’s most recent quarterly results were hard to ignore. For Q2 FY2026, the company posted EPS of $6.20, blowing past the $3.49 estimate. Revenue came in at $3.03 billion, topping forecasts by over 13%.
Adjusted earnings for the first half of fiscal 2026 hit $7.55 per share — nearly 150% above the same period last year. For the current quarter, the company is guiding to EPS of around $13, compared to a loss of $0.30 in the year-ago quarter.
That kind of growth is being fueled by a shortage of flash storage products, particularly enterprise SSDs. AI data centers have been buying them up at a rapid pace as traditional hard drives remain sold out through the end of 2027.
Western Digital noted it is already receiving firm purchase orders for HDD shipments in 2027 and 2028, which helps explain why customers are turning to SSDs as an alternative.
“Stargate” Platform and Long-Term Deals Add Visibility
SanDisk’s 128TB SSDs, built on its “Stargate” platform using QLC technology, are currently being evaluated by major cloud providers. The drives offer higher storage density and better efficiency for large-scale AI infrastructure.
The company is also moving toward multi-year supply agreements with cloud customers. Some deals are already in place, with more under discussion. That kind of locked-in demand gives SanDisk better revenue predictability — something memory stocks don’t typically enjoy.
Analysts on Wall Street currently rate SNDK a Strong Buy based on 12 Buy ratings, 3 Holds, and zero Sells. The average 12-month price target sits at $688.33, implying some downside from current levels following the recent run-up.
The stock’s current market cap sits around $106–111 billion. For context, reaching a $1 trillion valuation would require roughly a 10x increase from here. Analysts estimate EPS could reach $86 over the next couple of years. Applied to the U.S. tech sector’s average P/E of around 39, that math points to a potential stock price around $3,355.
As of Thursday morning, SNDK was trading around $747 after recovering some of its pre-market losses.
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