SanDisk SNDK shares have been melting increased over current months as its function within the broader AI frenzy lastly comes into focus. The inventory is up greater than 170% simply during the last three months, by far reflecting one of many strongest strikes we’ve seen over the interval.
Picture Supply: Zacks Funding Analysis
AI is driving an enormous surge in storage demand, which is the place SanDisk is available in. NAND costs are rising quickly, with AI knowledge facilities and cloud suppliers needing extra high-speed storage.
Importantly, the inventory is on the reporting docket this week, serving to headline a jam-packed week of earnings total.
SanDisk Expectations Soar
SanDisk’s EPS outlook has shifted notably bullish over current months, touchdown the inventory right into a present Zacks Rank #1 (Robust Purchase). The outlook for the upcoming launch has shifted notably bullish, with the present $3.54 Zacks Consensus EPS estimate up greater than 70% for the reason that starting of final November.
Income expectations have adopted the same bullish path, as seen beneath.
Picture Supply: Zacks Funding Analysis
The corporate’s top-line acceleration is obvious within the quarterly chart beneath, the place gross sales of $2.3 billion climbed 22% year-over-year in its newest interval. Its present fiscal yr (ends in June) has additionally confirmed the favorable demand backdrop, with the present $11.2 billion estimate up practically 20% during the last yr.
Picture Supply: Zacks Funding Analysis
Nonetheless, traders ought to pay attention to the steep volatility we’ll probably see following the upcoming launch. A weak report/steering would simply skew sentiment, although it’s value noting that valuation multiples aren’t stretched to excessive ranges by any means, even after the huge run. Shares at the moment commerce at a 22.8X ahead 12-month earnings a number of, properly beneath the 2025 excessive of 42.1X.
Placing Every thing Collectively
A extremely favorable demand setting, pushed by the AI frenzy, has positioned SanDisk SNDK in a notably sturdy place. The corporate could possibly be at first of an enormous progress section, with its storage options a key enabler for AI techniques. Present consensus expectations for its present fiscal yr allude to a 50% gross sales progress surge on 450% increased EPS, underpinning the favorable story.
The inventory has jumped to a Zacks Rank #1 (Robust Purchase) in consequence, with its earnings this week set to be an enormous headliner. Anticipate some elevated volatility post-earnings given the fast rise, with traders undoubtedly anticipating favorable steering in regards to the total demand image.
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Sandisk Company (SNDK) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
