SanDisk’s 8-for-1 Split Faces Skepticism Despite Record Earnings

Key points

• SanDisk’s board approved an 8-for-1 stock split, with trading beginning on November 20, 2026.
• Fiscal Q1 revenue reached $11.0 billion, up 23% sequentially, driven by a 61% rise in data center revenue to $4.8 billion.
• The stock closed at $1,330 on October 29, 2026, which is 43% below its record high of $2,335 set in June.
• Growth is decelerating; fiscal Q2 guidance implies only 12% sequential revenue growth, down from 51% and 97% in prior quarters.
• Gross margins have plateaued at 85%, and the stock trades at approximately 11 times earnings, with forward estimates suggesting a drop to 6 times.

Background

SanDisk has experienced a massive rally, gaining over 460% year-to-date, driven by strong demand for NAND flash memory in AI data centers. Recent archive coverage notes that despite beating estimates, the stock faced significant sell-offs in late October due to valuation concerns and broader profit-taking in the memory sector. The current split announcement follows this period of volatility and high expectations.

Why it matters

The stock split highlights the tension between SanDisk’s strong operational performance and its current valuation. Investors are questioning whether the stock is overextended, given that it trades far below its recent highs and faces slowing growth rates. The historical performance of other companies that split from below their peaks suggests that the split itself may not guarantee future gains, making the sustainability of flash memory prices a critical factor for the company’s future trajectory.

What to watch

Investors will monitor SanDisk’s fiscal Q2 results, expected to show revenue between $12.2 billion and $12.6 billion. The market will also watch for any further signs of slowing growth or margin compression, as well as the broader performance of the memory sector following recent sell-offs.