SanDisk just posted one of the most dramatic earnings jumps of the AI era. The flash-storage maker — spun off from Western Digital in early 2025 — reported fiscal first-quarter 2027 results after the market close on October 29, with revenue expected around $10.64 billion against $2.308 billion a year ago — a roughly 361% year-over-year surge that has Wall Street talking about even higher stock prices.
SanDisk logo (Credits: MarketWatch)
SanDisk Earnings: The Numbers Behind the Surge
Analysts expected adjusted earnings of about $46.22 per share — versus just $1.22 in the same period last year, a nearly 37-fold jump. The company’s own guidance called for $10.3 billion to $10.8 billion in revenue and $44 to $46 in adjusted EPS, meaning market expectations sat above the company’s midpoint. As analysts noted ahead of the report, simply meeting guidance might not have been enough to push the stock higher — investors are focused on NAND pricing, data center demand, and whether margins can keep expanding.
SanDisk makes NAND flash storage — SSDs, memory cards, and USB drives — sold to data centers, edge-device makers, and consumers. Data center storage has grown from about 12% to 38% of bits shipped in a year, making it the company’s fastest-growing market, and CEO David Goeckeler has called AI inference a “memory-centric, storage-intensive problem” reshaping demand for NAND. The company recently began shipping a new high-capacity product called Stargate, built for the massive datasets AI systems create and use.
Why Analysts Say SanDisk Stock Is Heading Higher
SanDisk shares have already more than quintupled in 2026, soaring over 430% year-to-date, making it the poster child of the AI storage boom. Wednesday’s rally got a lift from rival SK Hynix’s record quarter — revenue up 328% year-over-year, operating profit up 632% — and its call that AI memory demand will outpace supply through 2030. The sector is priced for drama: SanDisk carried an implied 9.44% earnings move into the report.
Analyst targets remain striking. Mizuho raised its price target to $2,050 in early October, and Rosenblatt started coverage at Buy with a $2,400 target in September. The bears’ case: much of the profit jump came from higher prices rather than volume, and storage has a history of boom-and-bust pricing cycles. As one analyst review put it, the stock trades near 6 times estimated forward earnings — suggesting the market may already be pricing a peak sharper than SanDisk’s contracts and guidance imply.
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Source: MarketWatch — read the full story there.
