TLDR
- Sandisk stock rose 2.7% on Tuesday after Argus upgraded the stock from Hold to Buy
- Q4 EPS came in at $39.25, beating the $33.28 estimate, with revenue up 371.6% year over year to $8.96 billion
- Management guided Q1 2027 EPS of $44 to $46, with revenue expected between $10.3 billion and $10.8 billion
- The board approved a $14 billion share buyback program
- Consensus analyst rating is “Moderate Buy” with an average price target of $1,853.14
Sandisk (SNDK) stock jumped 2.7% on Tuesday after Argus upgraded the stock from Hold to Buy. The stock hit an intraday high of $1,287.04 before settling at $1,271.05, up from Monday’s close of $1,237.92.
The upgrade comes on the heels of a strong fiscal fourth quarter. Sandisk posted EPS of $39.25, well above the $33.28 consensus estimate. Revenue came in at $8.96 billion, up 371.6% year over year.
That kind of growth is hard to ignore. Datacenter revenue alone jumped 437% in fiscal 2026, driven by rising demand for high-capacity NAND storage as AI models scale up.
Sequential revenue growth wasn’t just about volume. Higher pricing also played a role, pointing to real pricing power with customers. That combination is what’s pushing margins and cash flows higher.
Management guided fiscal Q1 2027 revenue of $10.3 billion to $10.8 billion. At the midpoint, that’s roughly 17.6% sequential growth. Non-GAAP gross margins are expected to land between 83% and 85%.
Full-year EPS guidance for Q1 2027 was set at $44 to $46. For the full fiscal year, analysts estimate Sandisk will post $187.19 in EPS.
The board also approved a $14 billion share repurchase program, covering up to 6.6% of outstanding stock.
Analyst Targets Vary Widely
Wall Street’s view on SNDK is broadly bullish, but the targets span a wide range. Wedbush raised its target to $2,000 with an outperform rating. Mizuho went higher, lifting its target to $2,200. Susquehanna trimmed its target from $3,250 to $3,050 but kept a positive rating.
The consensus across 26 analysts sits at “Moderate Buy,” with three Strong Buy ratings, nineteen Buy ratings, and four Hold ratings. The average price target is $1,853.14.
Zacks has an even higher average short-term target of $2,287.05, with the highest individual target at $3,169.
Sandisk currently holds a Zacks Rank of 1, which is a Strong Buy.
Risks Still on the Table
The stock isn’t without its risks. SNDK carries a beta of 5.21, meaning it moves sharply in both directions. The stock has surged more than 3,000% over the past year, raising questions about valuation.
Memory pricing is cyclical, and questions remain about how long AI-driven demand will stay this strong. Some insiders have been trimming their positions. EVP Alper Ilkbahar sold 2,000 units in June, and insider Bernard Shek sold 600 units in early August.
Major institutional investors have been building stakes. BlackRock added a new position worth over $23 billion in Q2. State Street, Norges Bank, and Bank of America also initiated new positions.
Sandisk has signed ten New Business Model agreements in total, improving revenue visibility going into fiscal 2027.
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