Tonight’s results will test whether recent pullbacks in SNDK and WDC reflect profit-taking or a cycle shift amid AI-driven data-center growth.
SanDisk and Western Digital report earnings after the close, with investors scrutinizing AI-driven storage demand. SanDisk’s stock has surged 400% year-to-date, fueled by NAND shortages and soaring data-center revenue, which jumped 233% sequentially last quarter. Consensus estimates call for $8.5 billion in revenue and $34.60 in adjusted EPS, though valuations remain elevated at 10x annualized earnings.
The stocks have retreated sharply from June highs, raising questions about sustainability. Key focus areas include NAND pricing, supply discipline, and long-term customer agreements. Next quarter’s EPS is projected at $46.33, with next year’s estimate at $210.88, implying a forward P/E of 6.70. An investor day next week may limit detailed guidance tonight.
A beat and strong outlook will likely be needed to sustain momentum, given the unprecedented turnaround from $2.99 in fiscal-year EPS. Market reaction could hinge on whether the pullback was temporary or signals a broader cycle shift.