Sandisk (SNDK) management offered some perspective following earnings this week showing that the momentum stock shouldn’t be down for much longer.
AlphaSpace stat to know: $4.5 billion
Sandisk repurchased a whopping $4.5 billion of its stock in its most recent quarter, per Yahoo Finance AlphaSpace data. The company has $14.5 billion remaining under its existing share repurchase authorization.
Sandisk looks ready to stay active in repurchasing, Citi analyst Asiya Merchant said in a note on Friday after meeting with the company’s CEO and CFO.
Here’s what Merchant took away from the meeting:
“Overall, management tone continues to be very bullish … This conviction is underpinned by a sizable market opportunity, with management pointing to a NAND-related total addresable market of roughly $500 billion by calendar year 2027 (up from $300 billion in 2026), supported by secular demand drivers as AI inferencing scales. Management also emphasized its growing confidence in the durability of demand, particularly as hyperscalers increasingly scale AI inference workloads globally, driving structural growth in data-center storage requirements. The company views these demand trends as long-lasting rather than cyclical or temporary, reinforcing its positive outlook on NAND industry fundamentals.”
Zoom out
Sandisk reported blowout fiscal fourth quarter 2026 results this week, comfortably beating Wall Street estimates with non-GAAP earnings of $39.25 per share on $8.97 billion in revenue.
The record top-line performance was driven by explosive demand for AI memory infrastructure, which propelled data center revenue up 103% sequentially to $2.98 billion.
But the stock tanked 6.8% on Thursday, primarily because the midpoint of Sandisk’s first quarter fiscal 2027 revenue guidance — $10.3 billion to $10.8 billion — came in below consensus estimates of $10.8 billion.
Despite a summer swoon, Sandisk stock is still up close to 430% this year. So the guidance needed to be absolutely mind-bending to keep the bears from piling on. It wasn’t.
Executives gave no indication on the earnings call that Sandisk’s fundamental story was shifting negatively, however.
“We spent a lot of time over the last two or three quarters really working very deeply with our largest customers on committing demand. We have over four years of visibility now. We feel very good about where the franchise is,” Sandisk CEO David Goeckeler said.
Bottom line
The sell-off on Sandisk looks absurd any way you cut it. The company is growing revenue by triple digits, it has a massive stock buyback plan in play, and it has strong demand visibility well out into next year.
