Key Takeaways SNDK expects Q2 revenues of $2.55B-$2.65B and EPS of $3.00-$3.40, both below consensus estimates.BiCS8-powered SSDs and strong edge demand from the PC refresh cycle are set to boost Q2 results. SNDK shares soared 1080.6% in 6 months, beating sector and peers amid rising AI-driven storage demand. Sandisk (SNDK) is set to report its second-quarter fiscal 2026 results on Jan. 29.For the to-be-reported quarter, SNDK expects revenues between $2.55 billion and $2.65 billion. The Zacks Consensus Esti ...

Core Viewpoint - The demand for memory products, particularly from SanDisk, is significantly driven by AI, leading to a strong stock performance and growth expectations for the company. Company Overview - SanDisk is a flash memory manufacturer headquartered in Milpitas, operating in 30 countries with over 11,000 patents, emphasizing innovation-driven growth [4] - The company specializes in NAND flash technology, catering to AI workloads in data centers, edge devices, and consumer segments [4] Financial Performance - For Q1 2026, SanDisk reported revenue of $2.3 billion, reflecting a 23% year-on-year increase [5] - The company achieved net cash positive status ahead of guidance, with stock skyrocketing by 1,100% over the last six months [5] Growth Drivers - SanDisk is expected to double the price of its high-capacity 3D NAND memory devices, supported by strong demand and anticipated shortages [2] - BiCS8 technology accounted for 15% of total bits shipped in Q1 2026, indicating robust growth potential in high-capacity, power-efficient SSDs [6] - Engagement with hyperscalers is increasing, with two qualifications underway and potential collaborations with five others, suggesting strong top-line growth [6] Market Dynamics - Demand for NAND products is projected to outpace supply, creating a favorable pricing environment for memory devices [7] - SanDisk reported adjusted free cash flow of $448 million in Q1, with expectations for significant growth in free cash flow over the next 12 to 24 months, supporting shareholder value creation [7]

Industry Overview - The technology sector is experiencing growth due to digitalization, driven by the rapid deployment of Artificial Intelligence (AI) and cloud computing transition [1] - Strong adoption of AI technologies, including Generative AI and agentic AI, is increasing demand for high-performance computing and data-center infrastructure, leading to higher sales of semiconductors and related services [1] - Industrial automation is being enhanced by AI deployment, with increased usage of the Internet of Things, robotics, and automation [1] - Quantum computing, although in early stages, shows potential in solving complex problems in areas like drug discovery and logistics [1] Semiconductor Market - Massive investments in chips, particularly GPUs and customized accelerators, are driving semiconductor demand [4] - The Semiconductor Industry Association reported that semiconductor sales reached $75.3 billion in November 2025, a 29.8% year-over-year increase and a 3.5% month-over-month increase [4] - In October 2025, semiconductor sales were $72.7 billion, reflecting a 4.7% month-over-month increase and a 27.2% year-over-year increase [4] Company Performance and Earnings Estimates - Sandisk (SNDK) has an Earnings ESP of +3.07% and is expected to benefit from a shift in the NAND flash memory market, driven by AI applications [8][9] - The Zacks Consensus Estimate for Sandisk's earnings has increased to $3.26 per share, with the company set to report results on January 28, 2026 [10][11] - Amphenol (APH) has an Earnings ESP of +3.78% and is scheduled to report results on January 28, 2026, with a consensus earnings estimate of 93 cents per share, indicating 69.1% growth year-over-year [12][13] - ASML Holding has an Earnings ESP of +0.70% and is also set to report on January 28, 2026, with a consensus estimate of $8.85 per share, reflecting 21.2% growth year-over-year [14][16] - Corning (GLW) has an Earnings ESP of +1.72% and is scheduled to report on January 28, 2026, with a steady earnings estimate of 70 cents per share, suggesting 22.8% growth year-over-year [17][19] Investment Outlook - Leading hyperscalers like Amazon, Alphabet, and Microsoft are making multi-year investments to expand cloud capacity and support AI deployment, which bodes well for technology stocks [3] - The combination of strong earnings estimates and positive market trends positions several technology stocks favorably for potential earnings surprises [6][7]

Core Insights - Sandisk (SNDK) shares have surged 816.3% over the past six months, reaching a 52-week high of $395.16, significantly outperforming the broader Zacks Computer and Technology sector and the Zacks Computer-Storage Devices industry [1][2] Market Dynamics - The transformative shift in the NAND flash memory market, driven by surging demand from artificial intelligence applications and Sandisk's technological leadership in next-generation storage solutions, is benefiting the company [2][5] - Major cloud customers are showing strong interest in Sandisk's Stargate product line, which focuses on storage-optimized SSDs, enhancing its market position against competitors [7] Financial Performance - Sandisk's data center segment is experiencing remarkable momentum, with revenues reaching $269 million in the fiscal first quarter, up 26% sequentially, and projected demand growth in the mid-40% range for the year [6][10] - Consumer revenues reached $652 million in the fiscal first quarter, up 27% year over year, with successful partnerships, particularly with Nintendo [12] Technology and Innovation - Sandisk's advanced BiCS8 technology is a game-changer, accounting for 15% of total bits shipped in the fiscal first quarter, with expectations to dominate the production mix by fiscal year-end [5][6] - The company is developing high-bandwidth flash technology to meet emerging AI inference requirements, opening new growth avenues beyond traditional storage [11] Valuation and Growth Prospects - Despite the stock's impressive surge, Sandisk's valuation remains attractive, trading at 4.79x forward 12-month price-to-sales, below the sector average of 7.47x [13][14] - The Zacks Consensus Estimate for Sandisk's fiscal 2026 revenues is pegged at $10.45 billion, indicating a year-over-year growth of 42.07% [12]

Group 1 - SanDisk Corporation (NASDAQ:SNDK) is gaining attention as a promising tech stock, with Bank of America raising its price target from $300 to $390 and maintaining a Buy rating [1] - Analysts are optimistic about the role of NAND technology in AI infrastructure, particularly following Nvidia's presentation at CES 2026 [1][2] - The introduction of the Inference Context Memory Storage tier, powered by the BlueField-4 DPU, is expected to enhance the performance of flash memory, making it critical for AI applications [2] Group 2 - JPMorgan initiated coverage of SanDisk with a Neutral rating and a price target of $235, highlighting the company's strategic position to benefit from the AI-driven supercycle in enterprise solid-state drives [3] - SanDisk's competitive advantage stems from its lower cost base, achieved through a long-standing manufacturing joint venture with Kioxia [3] - The company develops and sells data storage devices using NAND flash technology across various global markets [4]

Core Insights - SanDisk (SNDK) has shown exceptional performance in 2025, with a year-to-date increase of 578.5%, making it a notable stock to watch for 2026 [1] - The company is valued at $36.6 billion and specializes in high-capacity, high-performance solid-state drives (SSDs) crucial for cloud providers and enterprises, particularly for AI workloads [2] Financial Performance - In the first quarter of fiscal 2026, SanDisk reported revenue of $2.3 billion, reflecting a 21% sequential increase and a 23% year-on-year growth [3] - Adjusted earnings per share (EPS) rose to $1.22 from $0.29 in the previous quarter, with an adjusted gross margin of 29.9% [3] Market Dynamics - The company is experiencing a supply-demand imbalance in NAND flash memory, allowing for strategic allocation decisions that enhance long-term value and improve pricing and margins [4] - SanDisk is benefiting from significant global investments in AI and data center infrastructure, projected to exceed $1 trillion by 2030 [4] Technological Advancements - SanDisk's BiCS8 technology, designed for superior capacity, performance, and energy efficiency, is gaining traction and currently accounts for 15% of total bits supplied [4] - It is expected that BiCS8 will dominate manufacturing by the end of fiscal 2026, strengthening SanDisk's position in data center, edge, and consumer markets [4]

Core Insights - Sandisk (SNDK) is experiencing significant growth in datacenter revenue, which increased by 26% sequentially in Q1 fiscal 2026, driven by strong demand for its "Stargate" SSD product line [1][9] - The company's BiCS8 technology accounted for 15% of total bits shipped and is projected to dominate bit production by the end of fiscal 2026, benefiting from the rapid growth of AI and investments in data centers [2][9] - For Q2 fiscal 2026, Sandisk anticipates revenues between $2.55 billion and $2.65 billion, supported by double-digit price increases and mid-single-digit bit growth [3][9] Datacenter and AI Market Dynamics - Sandisk faces competition from Dell Technologies and Micron Technology in the datacenter and AI sectors [4] - Dell Technologies reported a significant increase in AI-optimized server orders, with $12.3 billion in the third quarter and a total of $30 billion year-to-date, indicating strong market leadership [5] - Micron is leveraging the AI boom with its HBM3E solutions, which are gaining traction among major hyperscalers and enterprise customers, contributing to substantial revenue growth [6] Financial Performance and Valuation - Sandisk shares have appreciated by 418.3% over the past six months, significantly outperforming the broader Zacks Computer and Technology sector, which returned 21.1% [7][8] - The stock is trading at a forward 12-month price/sales ratio of 3.05X, compared to the Zacks Computer-Storage Devices average of 1.81X, indicating a premium valuation [11] - The Zacks Consensus Estimate for fiscal 2026 earnings is $12.59 per share, reflecting a 3.2% increase over the past 30 days, while Sandisk reported earnings of $2.99 per share in fiscal 2025 [13]

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]