Sandisk Q4 revenue jumps 372% as NAND demand drives 2026 surge

Sandisk (SNDK) reported a 372% year-over-year increase in revenue for the fourth quarter of fiscal year 2026, ending July 3. The storage chipmaker has been the top-performing stock in the S&P 500 for most of the year, rising nearly 500% before recently falling behind Moderna for the lead. Despite the loss of the number one spot, Sandisk holds second place by a wide margin.

The company's performance is driven by high demand for NAND memory chips, which are used in solid-state drives (SSDs) for long-term information storage. The current build-out of AI data centers has created a situation where demand is high and supply is low, causing prices to skyrocket. Because SSDs lack distinguishing performance characteristics, Sandisk's business operates similarly to a commodity, meaning price surges have directly translated into significant revenue growth.

Investors have expressed concern that this trend could reverse if demand shifts, citing historical precedents for cyclical downturns in the memory sector. In response, Sandisk is restructuring its commercial relationships to mitigate this volatility. The company is entering into new business model agreements with customers that lock in committed volumes and defined pricing structures. These contracts reduce the influence of spot market supply and demand curves, providing greater visibility into future earnings.

This strategic shift aims to make Sandisk less cyclical over the long term. However, the market currently prices the stock as if a cyclical downturn is imminent. At 19 times trailing earnings and 6.5 times forward earnings, the valuation does not reflect potential growth for 2027. The source argues that if Sandisk hits expectations and maintains its current trailing earnings valuation, the stock could triple in 2027. Such a move would position Sandisk among the best-performing S&P 500 stocks next year, potentially securing another top-five finish in the index.