Sandy‑Stone Surge: Is the Flash Stock Still a Treasure?

A sudden jump of more than 17 percent in just five days has put Sandisk Corporation back into the headlines. The rally didn’t happen alone; it was helped by a strong earnings report from Seagate Technology, which also saw a big gain after its own impressive third‑quarter results. Seagate’s upbeat outlook—especially on cloud and AI growth—gave the whole storage sector a boost that Sandisk capitalised on.

Sandisk is a California‑based maker of flash memory and solid‑state drives. Since spinning off from Western Digital in early 2025, the company has grown its market value to about $157 billion. Over the past year the share price has climbed more than 3,100 percent, making it one of the biggest winners on Wall Street. Even in the last month it has risen 17 percent, reaching a high of $1,103 on April 29.

Earnings Beat Expectations

• Revenue topped $3 billion, up 61 percent YoY.
• Data‑center sales jumped 76 percent.
• Edge storage grew 63 percent.
• Consumer revenue rose 52 percent.
• EPS (non‑GAAP): $6.20, far above the $1.23 earned a year before and well past analysts’ forecasts.
• Gross margin expanded to 51 percent, a gain of nearly 19 percentage points.

Forward Guidance

• Next‑quarter revenue projected between $4.4 and $4.8 billion.
• EPS expected to hit $12–$14.
• Analysts predict a huge jump in 2026, with EPS reaching $47 and then soaring to over $113 the following year.
• The consensus price target is now $1,400, with many analysts rating the stock “Strong Buy.”

Valuation vs. Growth

Despite this optimism, the share price already trades above most analysts’ targets and at a premium to its sector peers. Some experts worry that the current rally may have priced in much of the upside, while others see room for further growth driven by AI and cloud demands. Investors should weigh whether the stock’s high valuation is justified or if a pullback could occur.