Sandisk Trades at 15.83x Forward P/E Below Peers with $4.8B Q3 Guide
Sandisk trades at a forward P/E of 15.83x, below the industry average of 17.03x and sector’s 24.58x, despite a 749.8% share gain over six months. Company projects fiscal Q3 revenue of $4.4–$4.8 billion with non-GAAP gross margins of 65–67% and EPS of $12–14, underpinned by datacenter revenues up 76%.
1. Valuation Discount
The company trades at a forward 12-month P/E of 15.83x, below the Computer-Storage Devices industry average of 17.03x and significantly lower than the broader tech sector’s 24.58x, reflecting a potential valuation gap despite a 749.8% share price gain over the past six months.
2. Q3 Financial Outlook
Sandisk projects fiscal third-quarter revenues of $4.4 billion to $4.8 billion, non-GAAP gross margins between 65% and 67%, and earnings per share of $12 to $14, implying robust profitability driven by its premium flash storage portfolio.
3. AI and Datacenter Demand
Datacenter revenues rose 76% year-over-year in the fiscal second quarter, fueled by strong adoption of AI infrastructure and enterprise SSDs, while edge device sales climbed 63% and consumer storage grew 52%, highlighting diversified demand across end markets.
4. Product Catalysts and Partnerships
The near-term ramp of its QLC “Stargate” product with two major hyperscalers and the extended joint venture with Kioxia through 2034 are set to enhance manufacturing scale and technology leadership, supporting long-term cost advantages over peers.