Sandisk Company (NASDAQ:SNDK) is among the greatest performing S&P 500 shares in 2025. On December 8, JPMorgan initiated protection of SanDisk with a Impartial ranking and $235 value goal. The agency famous that SanDisk is well-positioned to capitalize on the AI-driven enterprise SSD supercycle, benefiting from a low-cost construction via its three way partnership with Kioxia. Nonetheless, JPMorgan cautioned that the corporate’s present pricing power is probably going a brief cyclical peak slightly than a everlasting shift within the trade’s revenue margins.
In its FQ1 2026 earnings report, SanDisk Company reported a income of $2.3 billion, which was a 21% sequential improve and a 23% year-over-year improve. Non-GAAP EPS surged to $1.22, which additionally exceeded the $0.29 recorded within the earlier quarter. This was supported by a non-GAAP gross margin of 29.9%, which grew by 3.5% quarter-over-quarter as the corporate transitioned to its high-performance BiCS8 expertise, which already accounts for 15% of whole bits shipped.
Knowledge Heart income notably rose 26% sequentially to $269 million, pushed by cloud enlargement and AI infrastructure wants. The Edge phase, which incorporates cellular and consumer storage, additionally climbed 26% to achieve $1.387 billion, whereas Client income grew 11% to $652 million. Looking forward to FQ2 2026, SanDisk initiatives income between $2.55 and $2.65 billion. Administration highlighted that visibility into 2026 and 2027 is enhancing as prospects shift towards long-term agreements to make sure provide certainty, notably for enterprise SSDs just like the Stargate portfolio.
Sandisk Company (NASDAQ:SNDK) develops, manufactures, and sells information storage gadgets and options utilizing NAND flash expertise within the US, Europe, the Center East, Africa, Asia, and internationally.
Whereas we acknowledge the potential of SNDK as an funding, we consider sure AI shares supply better upside potential and carry much less draw back danger. For those who’re in search of an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
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Disclosure: None. This text is initially printed at Insider Monkey.
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