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Wall Street's Next Blockbuster Stock Split Has Arrived -- The Stock Has Gained 3,050% Since Its 2025 Debut and Still More Upside Ahead, According to Wall Street
The Motley Fool • • business
Key Points:
- Sandisk, spun off from Western Digital less than a year ago, has seen its stock surge 4,553% over the past year due to strong demand for its AI-related memory chips, with shares up 378% in 2026 alone.
- The company announced an 8-for-1 stock split effective November 20, 2026, allowing shareholders to receive seven additional shares for each share owned, aiming to increase stock liquidity.
- Sandisk reported fiscal Q1 2027 revenue of $11 billion, a 378% year-over-year increase, and adjusted EPS of $49.51, surpassing analyst expectations amid robust customer demand and long-term supply agreements.
- Despite concerns about AI demand sustainability and competition from China, Sandisk has secured long-term contracts averaging over four years, locking in minimum prices and ensuring supply stability through the decade.
- Wall Street remains bullish, with 84% of analysts rating Sandisk as a buy or strong buy and an average price target implying 85% upside; some analysts foresee the stock potentially tripling due to strong fundamentals and cash flow.
