Sandisk: The Strong Buy Case Just Got A Gift

Future Stack Investment 739 Followers Follow Summary Sandisk Corporation is reaffirmed as a Strong Buy after Q4 outperformance and a significant pullback, trading at 5.7x FY2027 EPS. SNDK has secured $93.9 billion in minimum revenue through 10 New Business Model agreements, providing enhanced revenue visibility and demand protection. Q4 results exceeded expectations: revenue rose 51% QoQ, gross margin reached 84.6%, and datacenter products now comprise 38% of bits sold. Base case valuation is $2,000–$2,300 (9.4x–10.8x FY2027 EPS), with risk factors including supply chain execution, NAND price ceilings, and intensifying competition. Darwel/iStock Editorial via Getty Images Elevator Thesis I upgraded Sandisk Corporation ( SNDK ) to a Strong Buy in my prior piece . Many investors believed that NAND prices had hit their peak. They expected consumers to slow down their buying activity and This article was written by Future Stack Investment 739 Followers Follow I’m an ACC-qualified finance professional with a Master’s in Audit & Accounting from Istanbul University and certificates in Data Analytics from Coursera. For over two years, I’ve worked as a Data Scientist and Financial Analyst at a leading property management firm in Istanbul, where I developed budgets, set targets, and applied data-driven insights to maximize profitability. My expertise spans financial modeling, market analysis, and investment research, including hands-on experience in stocks and cryptocurrency. Through concise, conversational writing, I now share these insights to help readers make smarter financial and investment decisions. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.