Sandisk (NASDAQ: SNDK) has had an unbelievable growth story this year. It was spun off from Western Digital in February 2025 in a fairly low-key restructuring, but by October, it had shot up, ending the year with a 650% gain. It has only continued to rise, and it's now up 3,810% since the spinoff.
The stock has soared after every one of the four earnings reports it has already posted, especially the last one. However, it's down 36% over the past month, trading around the price it was before the previous earnings report in May.
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Should you buy Sandisk stock before fourth-quarter earnings results are released on Aug. 5?
The large artificial intelligence (AI) companies have already posted big gains. These were the obvious winners, like semiconductor stocks and large AI platforms. Nvidia and Palantir Technologies are probably the best examples.
While these companies are still growing rapidly, investors have been looking for other big opportunities, and one of the areas they've landed on is memory. Data centers need massive capacity to power training and inference, and the inference component requires a large amount of memory to process all the information. While several types of memory play a role, including high-bandwidth memory (HBM) and dynamic random-access memory (DRAM), which both serve to store information, NAND flash memory is a critical component, and few companies produce it. NAND stores information in an offset and is therefore important for low-power-consumption data storage; as AI models move toward deeper reasoning and agentic AI, this kind of non-volatile memory is crucial to the process.
As one of the few NAND memory providers, Sandisk has seen accelerating demand and, consequently, increasing prices. That has led to fantastic operating results, especially in its data center category.
Sandisk's third-quarter results for fiscal 2026 (ended April 3) were phenomenal, with a 251% year-over-year increase in revenue, a 78.4% gross margin, and an operating income of $1.1 billion, up from $2 million last year. It also made a change to its operating model, launching the "new business model" of long-term contracts to try to stabilize what could end up being a volatile business cycle.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
