What the vicious Sandisk bears are forgetting

Key Points:

• Sandisk repurchased $4.5 billion of its stock in the recent quarter and still has $14.5 billion remaining under its share repurchase authorization, signaling continued active buybacks.
• Management remains very bullish, citing a NAND-related total addressable market projected to grow from $300 billion in 2026 to $500 billion by 2027, driven by AI inferencing and increased data-center storage demand.
• The company reported record fiscal Q4 2026 results, with non-GAAP earnings of $39.25 per share and $8.97 billion in revenue, including a 103% sequential increase in data center revenue to $2.98 billion.
• Despite beating earnings estimates, Sandisk’s stock dropped 6.8% due to Q1 fiscal 2027 revenue guidance slightly below consensus, though executives emphasized strong demand visibility with over four years of committed customer demand.
• Overall, Sandisk’s fundamentals remain robust with triple-digit revenue growth, a large buyback plan, and durable demand outlook, making the recent stock sell-off appear unwarranted.