Sandisk shares have fallen 23% from their June 2026 high of $2,354, despite fiscal fourth-quarter revenue rising 372% year over year. The Motley Fool argues the pullback may be a buying opportunity, citing data-center demand and long-term customer deals.
Data centers’ share of Sandisk’s bit volume grew from 12% to 38% over the past year, reaching that level by the end of fiscal 2026 on July 3. The company has signed eight customer agreements securing nearly $94 billion in future revenue, with terms of up to five years. Management expects the deals to cover more than half of bit volume in fiscal 2027 and about two-thirds in fiscal 2028.
The agreements are intended to establish a pricing floor, but uncommitted NAND volume remains exposed to price swings. The article says weaker data-center demand or excess manufacturing capacity could still push earnings down. Sandisk trades at less than 10 times forward earnings; management expects mid-to-high-teens revenue growth from fiscal 2028 to fiscal 2030 and a free-cash-flow margin of roughly 50%.
