Catch up on the essentials
- The memory company's forward price-to-earnings-to-growth ratio sits at 0.19, compared with a sector average of 1.25, and its valuation is described as cheaper than Micron's, which carries a forward PE of 13.28.
- SanDisk has secured multi-year deals with eight data-center customers who have committed to spend at least $93.9 billion at the low end of their agreements, and the company projects the NAND market will reach $300 billion by 2030.
- The daily chart shows SanDisk's price forming a rising wedge, two ascending and converging trendlines that typically resolve to the downside as the lines approach convergence, with a bearish divergence visible on the Relative Strength Index.
Selected from this article · 2026-09-14
Read on for the full pictureSanDisk shares retreat 31% from 2026 peak despite blockbuster revenue and free cash flow
SanDisk (NASDAQ:SNDK) has dropped 31% from its year-to-date high even as its most recent earnings report showed revenue climbing 372% year over year to $9 billion and free cash flow reaching $5 billion, leaving the stock trading at a forward price-to-earnings ratio of 7.6, well below the technology sector median of 22 and the S&P 500 average of 19.1. The memory company's forward price-to-earnings-to-growth ratio sits at 0.19, compared with a sector average of 1.25, and its valuation is described as cheaper than Micron's, which carries a forward PE of 13.28. Analysts polled expect SanDisk revenue to reach $48 billion in the current fiscal year, up 141%, and $57 billion the following year.
Hyperscaler commitments underpin a $93.9 billion customer floor as NAND demand heads toward a $300 billion market
SanDisk has secured multi-year deals with eight data-center customers who have committed to spend at least $93.9 billion at the low end of their agreements, and the company projects the NAND market will reach $300 billion by 2030. Those long-term contracts are central to management's effort to dampen the historical cyclicality of NAND pricing. The combination of those commitments and the company's profit growth is the main argument that the recent share-price pullback leaves SanDisk trading at a discount to its underlying business.
Rising wedge and bearish RSI divergence put $1,000 support in focus
The daily chart shows SanDisk's price forming a rising wedge, two ascending and converging trendlines that typically resolve to the downside as the lines approach convergence, with a bearish divergence visible on the Relative Strength Index. That combination of patterns points to a possible bearish breakout toward the $1,000 support level. The technical setup contrasts with the company's operating performance, leaving valuation-driven bulls and chart-driven bears pointing to opposite conclusions about where the stock heads next.
Other developments
Separately, a TradingKey preview for SanDisk's fiscal fourth-quarter and full-year results framed expectations at $8.3 billion in revenue and $34 in earnings per share, above management's guidance of $7.75 billion to $8.25 billion in revenue and $30 to $33 in non-GAAP EPS, with consensus targets near $2,400, technical support at $1,371 and resistance at $1,534.
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