Is the AI Storage Boom Over? Why SanDisk’s Oct. 29 Earnings Could Prove the Doubters Wrong

Key Points:

• SanDisk is set to report fiscal Q1 2027 earnings on October 29, with Wall Street expecting significant growth, including a consensus EPS of $46.27 and revenue of $10.68 billion, reflecting strong demand despite recent share price declines.
• The previous quarter saw record results with a 372% year-over-year revenue increase to $8.965 billion and an 84.6% non-GAAP gross margin, driven largely by Datacenter sales which doubled sequentially.
• Concerns about a peak in AI storage demand and competition, particularly from Chinese firm CXMT, have caused a nearly 32% drop in shares over the past month, though the stock remains up over 420% year-to-date.
• Key indicators to watch include updates on New Business Model contracts, which currently represent nearly $94 billion in expected revenue, and pricing trends, as NAND prices are forecasted to surge significantly in 2026.
• SanDisk aims to demonstrate sustained growth beyond the current AI storage boom, supported by strong contract visibility, a $15.5 billion buyback program, and a solid balance sheet, with guidance and margin stability critical to countering peak-cycle concerns.