Core Insights - Sandisk (SNDK) shares have surged 371.2% over the past six months, significantly outperforming the Zacks Computer Storage industry's return of 20.6% and the broader Zacks Computer and Technology sector's appreciation of 20.6% [1] - The company has outperformed its storage peers, including Western Digital (WDC), Seagate (STX), and Micron Technology (MU), which returned 195.5%, 122.9%, and 100.3%, respectively, during the same period [1] Performance Overview - SNDK stock's performance over the last six months has been exceptional, with a 371.2% increase, far exceeding the returns of its competitors [9] - The strong demand for AI and data center solutions has driven the adoption of SNDK's BiCS8 SSDs and Stargate product line [9] Demand Drivers - Sandisk is poised to benefit from robust demand for NAND storage products, particularly due to the rapid growth of AI, which is expected to create a strong tailwind for its high-capacity, power-efficient SSDs [5] - The company's BiCS8 technology accounted for 15% of total bits shipped in Q1 of fiscal 2026 and is projected to dominate bit production by the end of fiscal 2026 [5] Revenue Growth - In Q1 of fiscal 2026, Sandisk's data center business reported revenues of $269 million, reflecting a 26% sequential increase [6] - Edge revenues rose 30% year-over-year to $1.39 billion, driven by ongoing PC upgrades and demand for high-bandwidth flash technology [10] Market Position - Sandisk's competitive position is expected to strengthen against Western Digital, Seagate, and Micron Technology due to its innovative technology and growing customer interest [7] - The partnership with SK Hynix is enhancing Sandisk's engagement with potential data center and edge customers [11] Future Outlook - For Q2 of fiscal 2026, Sandisk anticipates revenues between $2.55 billion and $2.65 billion, with earnings projected between $3 and $3.40 per share [13] - The consensus estimate for fiscal 2026 earnings is $12.59 per share, indicating a 3.1% increase over the past 30 days, with revenues expected to reach $10.45 billion, suggesting a 42.1% growth from fiscal 2025 [14] Valuation - Sandisk shares are currently trading at a premium, with a forward 12-month price-to-sales ratio of 2.74X, compared to the industry average of 1.75X [15] - The company holds a Zacks Rank 2 (Buy) and a Growth Score of B, indicating a favorable investment opportunity [18]
Sandisk Rises 371% in Six Months: Should You Buy the Stock?