Sandisk Shares Sink Despite Surging Sales. Is It Time to Buy the Stock?

SNDK shares fell 13.5% after the company reported fiscal Q1 results that showed revenue surging 378% to $11 billion. The selloff came despite the blowout top line, a disconnect that now has the stock trading at just 5x forward earnings.

The article attributes the revenue surge to two drivers: AI data center demand and rising NAND flash memory prices. Management expects demand to stay strong, backed by long-term contracts. Industry data center growth is projected at 40% in 2027, according to the source.

Interpretation: a 13.5% drop on a 378% sales jump suggests the market is pricing in a peak in pricing or margins rather than a miss on demand. A 5x forward P/E points to deep skepticism that current earnings power will last. That skepticism is the core debate, since NAND price strength is one of the stated drivers of the quarter.

MU, the other name in this earnings group, sits in the same memory-driven conversation, though the source provides no company-specific figures for it.