Bull of the Day: Sandisk (SNDK)

There’s an old saying on Wall Street that the trend is your friend. Well, when it comes to the technology sector, there are few trends more powerful than the artificial intelligence boom. We’ve seen the incredible run in NVIDIA and the companies building out AI infrastructure. But there’s another corner of the market that has been absolutely on fire. I’m talking about memory and storage.

AI needs more than just powerful processors. It needs massive amounts of data, and that data needs somewhere to live. That’s creating a tremendous opportunity for companies providing the infrastructure behind the AI revolution. One of those companies is today’s Bull of the Day, Zacks Rank #1 (Strong Buy)Sandisk (SNDK).

Sandisk develops and manufactures NAND flash-based storage products, including solid-state drives, embedded storage solutions, and consumer memory products. The company returned to the public markets as a standalone business in February 2025 following its separation from Western Digital. Since then, investors have been treated to an incredible rally as demand for high-performance storage has exploded.

Sandisk is in the Computer – Storage Devices industry, which ranks in the Top 10% of our Zacks Industry Rank. That’s a very favorable backdrop for a stock already benefiting from some of the strongest growth trends in technology.

Sandisk Corporation Price and Consensus

Sandisk Corporation price-consensus-chart | Sandisk Corporation Quote

The numbers behind this company are nothing short of staggering. Sandisk recently reported fiscal fourth-quarter earnings of $39.25 per share, beating the Zacks Consensus Estimate by 14.63%. Revenue surged 371.6% year over year to $8.97 billion, exceeding expectations by roughly 8%. Datacenter revenue jumped 103% sequentially to $2.98 billion as hyperscalers continued gobbling up storage capacity to support AI workloads.

That growth is translating into incredible profitability. Non-GAAP gross margins expanded to 84.6%, up from 78.4% in the previous quarter. Think about that for a second. This is a company selling storage products, yet it's generating margins that would make plenty of software companies jealous.

Revenue estimates tell a similar story. Analysts are looking for fiscal 2027 sales of $49.25 billion, up from $20.25 billion in fiscal 2026. That's more than 143% revenue growth. Fiscal 2028 sales are projected to climb another 19% to $58.46 billion.

The reason for the favorable rank is that over the last sixty days, analysts have upped the ante for both the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimate for the current year from $192.82 to $213.31 and next year up from $181.88 to $252.80. The stock has had some pressure recently because of the financing questions popping up in the Neocloud space. This should eventually work itself out. While investors know the numbers can’t grow like this forever, they should be enjoying the profits while they can.

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This article originally published on Zacks Investment Research (zacks.com).

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