The Motley Fool
01 Nov 2026, 09:17 UTC · 1h ago
Should You Buy Sandisk Stock at About 5 Times Its Guided Earnings?
Impact · against what's priced in
The latest guidance and revenue mix for SNDK are largely neutral to slightly negative, as the market had already priced in a significant deceleration from the previous quarter's growth. While the shift toward data center revenue is positive, the evidence of slowing pricing power suggests that record gross margins may be harder to sustain than the current price assumes.
- SNDK−0.10
Already priced in
- The price assumes
The massive 372% revenue growth just delivered, which the market already assumes will sharply decelerate to a 6.6% annual rate.
The market already expected a sharp deceleration from the 372% YoY growth; the guided sequential growth of ~12% for Q2 confirms this trend as it is a significant drop from the 23% growth seen in Q1.
What SNDK's price assumes · Sep 11
