Sandisk Trades at 15.83x P/E While Guiding $4.4–4.8 B Q3 Revenues
Sandisk currently trades at a forward P/E of 15.83x, below the industry average of 17.03x and sector average of 24.58x, while guiding fiscal Q3 revenues of $4.4–4.8 billion and non-GAAP gross margins of 65%–67%. Q2 datacenter revenues jumped 76% year-over-year on AI-driven SSD demand, with edge and consumer sales up 63% and 52%.
1. Discounted Valuation and Q3 Guidance
Sandisk trades at a forward 12-month P/E of 15.83x, below the Computer-Storage Devices industry average of 17.03x and the broader sector’s 24.58x. The company projects fiscal Q3 revenues of $4.4–4.8 billion, non-GAAP gross margins of 65%–67% and EPS between $12 and $14.
2. AI-Driven Datacenter Growth
Surging AI infrastructure demand drove a 76% year-over-year increase in Q2 datacenter revenues, as Sandisk advanced BiCS8 PCIe Gen5 TLC drives at a second major hyperscaler. Qualification of its Stargate QLC storage-class product is under way at two hyperscalers, with revenues expected to begin within upcoming quarters.
3. Consumer and Edge Storage Expansion
Edge revenues climbed 63% year-over-year in Q2, propelled by on-device AI adoption and a PC refresh cycle, while consumer storage sales rose 52% thanks to premium product innovations and strategic brand partnerships. Sandisk’s flash-only portfolio is capturing a larger share of the premium upgrade cycle versus competitors.
4. Share Performance and Long-Term Catalysts
Sandisk shares have gained 749.8% over the past six months, outperforming industry and sector returns. The extended joint venture with Kioxia through December 2034 and the upcoming Stargate QLC ramp serve as key drivers for manufacturing cost advantages and near-term revenue catalysts.