TLDR
- SanDisk (SNDK) stock rose about 5% in pre-market trading Wednesday after SK Hynix reported record results.
- SNDK closed Tuesday at $1,304.84, up 4%, and sits about 46% below its June record close of $2,335.
- SanDisk reports fiscal Q1 2027 results Thursday after the close. Analysts expect EPS near $46 and revenue near $10.6 billion.
- SK Hynix said NAND prices rose in the mid-20% range quarter over quarter and that supply shortages could last through 2030.
- Data center revenue hit $2.98 billion last quarter, and the stock trades near 6 times forward earnings.
SanDisk (SNDK) stock rose about 5% in pre-market trading on Wednesday. The move followed a record quarterly report from South Korean rival SK Hynix.
SNDK closed Tuesday at $1,304.84, up $49.26, or 4%. The day’s range was $1,259.00 to $1,315.98.
Even with the bounce, the stock is far from its peak. It hit a record close of $2,335 on June 25, and the 52-week high is $2,354.39. That leaves it roughly 46% lower.
SK Hynix reported revenue above 100 trillion won for the first time. Operating profit rose more than 600% from a year ago, with an operating margin of 80%.
The company said NAND prices climbed at a mid-20% rate from the prior quarter. It also said memory supply shortages are expected to last through 2030.
SK Hynix’s U.S.-listed shares jumped about 8% before the open. Micron and other AI-linked chip names also moved higher.
The Nasdaq gained 0.5% and the S&P 500 added 0.2% in pre-market trading. Memory stocks outperformed the broader market.
What SanDisk Needs to Show Thursday
SanDisk reports fiscal first-quarter results after the close Thursday, Oct. 29. Analysts expect EPS of about $46 and revenue near $10.6 billion.
Management guided for revenue of $10.3 billion to $10.8 billion. The midpoint is about 18% above the $8.97 billion from the prior quarter.
That would be a slower pace than recent quarters. Sequential growth was 97% in fiscal Q3 and 51% in fiscal Q4.
Management expects more storage shipped and “modest price increases” to drive growth. Micron said its NAND prices rose about 30% over a similar period, so pricing could come in above guidance.
Data center sales are another focus. Revenue in that segment rose from $440 million in fiscal Q2 2026 to $1.47 billion in Q3, then to $2.98 billion in Q4.
SanDisk does not guide by end market, so Thursday will be the first look at fiscal Q1 data center sales. Micron’s data center SSD revenue rose more than tenfold from a year ago, which is a good sign.
Valuation and Analyst Views
The stock has slid about 10% since Oct. 15. It fell more than 8% on Oct. 22, when the PHLX Semiconductor Index dropped nearly 7%.
At about $1,262, SanDisk trades at roughly 18 times fiscal 2026 adjusted EPS of $70.88. Based on fiscal 2027 estimates, the forward ratio is about 6. Micron’s is about 5.
The stock fell almost 7% the day after the August report, when management guided to modest price increases. Investors will look for the fiscal Q2 outlook for signs of pricing strength.
Cantor Fitzgerald kept an Overweight rating and cut its price target to $2,200. Wedbush has a Buy rating. Bank of America pointed to multiyear supply deals that give revenue visibility through 2029 and 2030.
SanDisk expects its output to stay on allocation beyond calendar 2027. Pre-market gains came a day before the report.
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