Sandisk's 371% Surge Reflects AI-Driven Storage Momentum: Investment Case Strengthens

Sandisk (SNDK) has delivered a remarkable 371% rally over the past six months, substantially outpacing its storage sector peers. This exceptional run wasn’t random—it reflects a fundamental shift in demand drivers for the company’s core products.

The Financial Picture

For its second quarter of fiscal 2026, Sandisk has guided revenues between $2.55 billion and $2.65 billion, with earnings projected at $3.00 to $3.40 per share. The consensus estimates peg second-quarter earnings at $3.25 per share and revenues at $2.62 billion. Looking at the full fiscal year 2026, analysts expect earnings of $12.59 per share (up 3.1% over the past month), compared to $2.99 in fiscal 2025. The company’s revenue trajectory shows even stronger momentum—fiscal 2026 revenues are expected to reach $10.45 billion, representing 42.1% growth from the prior year.

What’s Driving the Performance?

The stock’s 371% ascent reflects recognition of Sandisk’s competitive advantages versus storage rivals like Western Digital (up 195.5%), Seagate (up 122.9%), and Micron Technology (up 100.3%) over the same period.

Data Center and AI Infrastructure: Sandisk’s BiCS8 technology has become a critical enabler for the AI wave sweeping across hyperscalers and cloud providers. In Q1 fiscal 2026, BiCS8 represented 15% of total bits shipped and is expected to dominate production by year-end. This matters because projected investments in data centers and AI infrastructure are forecast to exceed $1 trillion through 2030. Sandisk’s data center revenues jumped 26% sequentially to $269 million in Q1, driven by demand for high-capacity, power-efficient SSDs powered by BiCS8. The company’s Stargate SSD product line is gaining traction among major customers, solidifying its competitive moat.

PC and Edge Device Refresh: Edge business revenues climbed 26% sequentially and 30% year-over-year to $1.39 billion in Q1, fueled by Windows 11 adoption and rising AI integration in consumer devices. PC unit shipments are expected to grow in the low single digits through 2026, while capacity per device advances at a mid-single-digit pace. This creates tailwinds for NAND content expansion. Additionally, Sandisk’s partnership with SK Hynix is opening doors for data center and edge inference applications, while the Nintendo Switch 2 microSD Express Card partnership has generated 900,000 units sold. Consumer business revenues reached $652 million in Q1, up 27% year-over-year and 11% sequentially, benefiting from gaming storage momentum including new ROG Ally offerings.

Valuation Consideration

Sandisk trades at a premium with a forward 12-month price-to-sales ratio of 2.74X versus the industry’s 1.75X. The Value Score of D reflects this elevated positioning, yet the company’s Zacks Rank #2 (Buy) designation and Growth Score of B suggest the premium may be justified given the growth trajectory ahead.

Bottom Line

Sandisk’s 371% ascent captures investor confidence in its ability to capitalize on AI infrastructure buildout and device refresh cycles. With BiCS8 technology gaining adoption, data center revenues accelerating, and consumer device demand rising, the company appears well-positioned for continued outperformance relative to legacy storage competitors.