Key Takeaways SNDK shares advanced 2.7% Tuesday following an Argus upgrade from Hold to Buy rating Fourth quarter earnings per share reached $39.25, surpassing analyst expectations of $33.28,
Shares of Sandisk (SNDK) climbed 2.7% during Tuesday’s trading session after receiving an upgrade from Argus, which shifted its stance from Hold to Buy. The stock reached an intraday peak of $1,287.04 before closing at $1,271.05, representing a gain from the previous day’s $1,237.92 finish.
This rating improvement follows an impressive fiscal fourth quarter performance. The company delivered earnings per share of $39.25, significantly exceeding the Wall Street consensus of $33.28. Total revenue reached $8.96 billion, representing a remarkable 371.6% increase compared to the same period last year.
Growth of this magnitude captures attention across the investment community. The datacenter segment alone experienced a 437% revenue surge during fiscal 2026, fueled by expanding demand for high-capacity NAND storage solutions as artificial intelligence workloads continue expanding.
The quarter-over-quarter revenue expansion wasn’t solely volume-driven. Improved pricing contributed meaningfully, demonstrating the company’s enhanced pricing leverage with its customer base. This dynamic combination is driving margin expansion and strengthening cash flow generation.
Company leadership provided fiscal Q1 2027 revenue guidance ranging from $10.3 billion to $10.8 billion. The midpoint implies approximately 17.6% sequential growth. Non-GAAP gross margin projections fall between 83% and 85%.
Fiscal Q1 2027 EPS guidance was established at $44 to $46. For the complete fiscal year, Wall Street analysts project Sandisk will deliver $187.19 in earnings per share.
The board of directors authorized a $14 billion share buyback initiative, representing approximately 6.6% of shares currently outstanding.
Street sentiment on SNDK remains generally optimistic, though price objectives vary considerably. Wedbush elevated its price target to $2,000 while maintaining an outperform rating. Mizuho took a more aggressive stance, boosting its target to $2,200. Susquehanna reduced its objective from $3,250 to $3,050 while maintaining a favorable outlook.
The aggregate consensus among 26 covering analysts registers as “Moderate Buy,” comprising three Strong Buy recommendations, nineteen Buy ratings, and four Hold ratings. The mean price objective stands at $1,853.14.
Zacks maintains an elevated short-term average target of $2,287.05, with the most bullish individual projection reaching $3,169.
The company currently maintains a Zacks Rank of 1, designated as Strong Buy.
The investment thesis includes meaningful risk considerations. SNDK exhibits a beta of 5.21, indicating substantial volatility in either direction. With shares having appreciated over 3,000% during the trailing twelve months, valuation concerns naturally emerge.
Memory semiconductor pricing follows cyclical patterns, and uncertainty persists regarding the duration of AI-fueled demand strength. Recent insider activity shows some position trimming. EVP Alper Ilkbahar disposed of 2,000 units in June, while insider Bernard Shek sold 600 units in early August.
Large institutional investors have been accumulating positions. BlackRock established a new stake exceeding $23 billion during Q2. State Street, Norges Bank, and Bank of America similarly initiated fresh positions.
The company has executed ten New Business Model agreements cumulatively, enhancing revenue predictability entering fiscal 2027.
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