Key Stats for Sandisk Stock
- Price Change for Sandisk stock: 13%
- $SNDK Share Price as of Nov. 24: $227
- 52-Week High: $285
- $SNDK Stock Price Target: $258
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What Happened?
Sandisk (SNDK) stock surged over 13% on Monday after S&P Global announced the flash storage company would be added to the S&P 500 index.
The move comes nine months after Sandisk was spun out of Western Digital in February as an independent company.
Sandisk will replace marketing firm Interpublic, which Omnicom is acquiring. The addition to the benchmark index is significant because fund managers tracking the S&P 500 will need to buy shares to reflect the change, thereby creating automatic buying pressure.
Beyond the S&P 500 news, Sandisk stock has been on a tear lately thanks to booming demand for its NAND flash storage products.
The company just reported blowout first-quarter fiscal 2026 results that crushed expectations across the board.
Revenue hit $2.31 billion, up 21% sequentially and 23% year-over-year. That came in well above the company’s guidance range of $2.1 billion to $2.2 billion. Non-GAAP earnings per share landed at $1.22, smashing the guidance of $0.70 to $0.90.
The company also achieved a net cash position of $91 million, reaching that milestone about six months faster than originally targeted.
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What the Market Is Telling Us About Sandisk Stock
The jump in Sandisk stock reflects both the technical boost from index inclusion and fundamental strength in the business.
CEO David Goeckeler emphasized that demand for NAND products is outpacing supply, a dynamic the company expects to persist through the end of calendar 2026 and beyond.
The rapid buildout of AI infrastructure is driving demand. With investments in data centers and AI expected to surpass $1 trillion by 2030, Sandisk is seeing dramatic increases in demand for high-capacity, power-efficient solid-state drives (SSDs) powered by its BiCS8 technology.
The data center business grew 26% sequentially, with the company now working with five major hyperscale customers through active sales and strategic engagements.
Sandisk’s new Stargate storage-focused SSD product line has two hyperscaler qualifications underway, with a third hyperscaler and a major storage OEM planned for calendar 2026.
Here’s the kicker: calendar 2026 will mark the first time that the data center becomes the largest market for NAND flash, surpassing the mobile market that has historically dominated.
Goeckeler noted that Sandisk recently updated its forecast for data center exabyte demand in 2026 from mid-20% growth to mid-40% growth. That’s a massive shift happening in real time.
Non-GAAP gross margin hit 29.9% in the quarter, up 350 basis points sequentially. Excluding startup costs and underutilization charges, gross margin would have been 33.1%.
For the current quarter, SanDisk is guiding to gross margins of 41% to 43%, driven by double-digit price increases and favorable cost trends.
The supply-demand dynamics are working in Sandisk’s favor as products are currently on allocation across all end markets.
The company generated $448 million in adjusted free cash flow, representing a 19.4% margin, and paid down $500 million of debt during the quarter.
CFO Luis Visoso noted that BiCS8 technology, which delivers industry-leading capacity and energy efficiency, accounted for 15% of bits shipped and is expected to reach the majority of bit production by the end of fiscal 2026. This transition is driving both cost improvements and product differentiation.
Fiscal second-quarter revenue guidance of $2.55 billion to $2.65 billion at the midpoint implies continued sequential growth, driven primarily by pricing power. The company expects to generate positive free cash flow despite ongoing capital investments in the BiCS8 transition.
With Sandisk stock now joining the S&P 500 and the company executing on a clear strategy to grow revenue, expand margins, and generate sustainable cash flow, investors are betting the flash storage leader can capitalize on one of tech’s biggest megatrends: the AI-driven explosion in data center demand.
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How Much Upside Does Sandisk Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
