Sandisk Is Up 429% This Year -- Its $15.5 Billion Stock Buyback Suggests Management Thinks Shares Are Still Cheap

SNDK authorized a $15.5 billion stock buyback program after shares climbed 429% in 2026, signaling management sees continued upside despite the rally. The repurchase authorization—one of the largest among tech hardware peers—follows explosive data center revenue growth of 437% year-over-year, fueled by AI infrastructure buildout.

The company trades at a forward price-to-earnings ratio of 6 and reports $93.9 billion in contracted minimum revenue, providing unusual revenue visibility for the sector. Gross margins stand at 85%, reflecting pricing power in high-performance storage solutions critical to AI workloads. Management's decision to deploy capital on buybacks at current levels suggests confidence that fundamentals justify further multiple expansion as enterprises accelerate data center investments.

The combination of triple-digit revenue growth, contracted backlog, and aggressive capital return sets SNDK apart in the storage space. The forward P/E of 6 implies either deep skepticism about sustainability or a significant valuation gap relative to AI infrastructure plays trading at premium multiples.