[REVISION HISTORY]

SanDisk AI rally continues amid index inclusion and risks

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2026-10-26 07:33 UTC → 2026-10-29 22:12 UTC · added ~~removed~~

SanDisk’s AI-driven rally has seen its stock rise over 3,900% in twelve months, exceeding $1,550. Following its February 2025 separation from Western Digital, the company has become a top performer in the S&P 500. In September 2026, SanDisk was added to the S&P 100 index, a move expected to trigger buying from index-tracking funds. Financial performance remains robust, with fiscal Q4 2026 revenue reaching $8.97 billion, a 372% year-over-year increase. Growth is heavily driven by the data center segment, which saw revenues jump 103% from the previous quarter. SanDisk has secured eight long-term supply agreements with major data center customers and has booked roughly two-thirds of its fiscal 2028 bit supply. To support long-term growth, the company is implementing business models targeting $93.9 billion in minimum revenue and has increased its share-buyback authorization to $15.5 billion. SanDisk also plans to release a next-generation high-bandwidth flash (HBF) chip in 2027 to address memory bottlenecks in AI inference workloads. Despite its success, the stock faces volatility. In October 2026, shares dropped 7.2% amid concerns regarding the sustainability of AI infrastructure spending, rising bond yields, and a broader technology sector sell-off. While competition from Chinese chipmaker CXMT has caused industry anxiety, analysts note CXMT primarily targets DRAM, whereas SanDisk specializes in NAND flash. ~~Investors are now awaiting the~~ On October 29, 2026, SanDisk reported record fiscal Q1 2027 ~~earnings report, scheduled for October 29, with non-GAAP~~ revenue ~~guidance between $10.3 billion~~ of $11.031 billion, a 378% year-over-year increase. This growth was fueled by the data center division, which saw revenues jump 1685.1% to $4.802 billion, and ~~$10.8~~ the Edge segment, which grew 320.5% to $5.832 billion. Conversely, the consumer division contracted by 39.1%. Following these results, the company announced an 8-for-1 stock split and noted it had completed $5 billion in corporate share repurchases during the period.

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