Sandisk (NASDAQ: SNDK) inventory was a taking pictures star in 2025, rising a ridiculous 1,475% because it went public final February after spinning off of Western Digital.
In 2026, because it approaches one 12 months since going public on Feb. 24, it has already gained 131% 12 months to this point (YTD).
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What has pushed this unbelievable surge, and might it presumably proceed? Let’s have a look to see if Sandisk inventory continues to be a purchase.
Whereas Sandisk is new to the market, it has been round since 1988 as a maker of solid-state storage drives and later transportable flash drives and reminiscence playing cards.
Whereas it nonetheless makes these merchandise for customers, its largest income drivers are NAND flash drives and solid-state drives for cell phones, knowledge facilities, and gaming storage, amongst different makes use of.
It’s usually one in all 5 main gamers throughout these markets, with among the opponents altering relying on the product. Throughout most of them, together with knowledge facilities and smartphones, it competes with Micron and Samsung, whereas it competes with Seagate in gaming storage drives.
It has been capable of acquire market share as a pure-play firm in its markets, fairly than when it was a part of Western Digital. The first income catalyst has been its solid-state drives for knowledge facilities, which have seen unbelievable demand and never sufficient provide, given the speedy enlargement of knowledge facilities as a result of rising want for synthetic intelligence (AI) compute. Sandisk’s knowledge heart income grew 64% within the final quarter, in comparison with the earlier quarter.
Total in the latest quarter, income jumped 31% from the earlier quarter and 61% 12 months over 12 months. Internet earnings rose a ridiculous 617% from the earlier quarter and 672% 12 months over 12 months.
The rally has continued into 2026, as Sandisk inventory has risen 131% 12 months to this point as of Feb. 10.
It has been boosted by a blowout earnings report and outlook on the finish of January. However there have additionally been studies that as a result of unbelievable demand for its knowledge heart and enterprise drives, it’ll double its costs in 2026, probably within the first quarter, based on analysts.
For the present quarter, its fiscal Q3, Sandisk is concentrating on $4.4 billion to $4.8 billion in income, which might be 47% to 60% development over Q2. Additional, its adjusted earnings are focused for $12 to $14 per share, which might be up double from $6.20 per share final quarter. Additionally, its gross margin is pegged at 64.9% to 66.9% — up from 50.9%.
