Does SanDisk Stock’s 25% Surges Make It a Buy in August?
SanDisk shares have rocketed over 400% this year and traders are piling in ahead of a make-or-break earnings report, but the pre-announcement surge may have already priced in the good news.
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SanDisk (NASDAQ:SNDK | SNDK Price Prediction) is ripping higher, with shares jumping nearly 25% over the past five trading sessions. As of Aug. 4, the stock traded around $1,394, up 406% year to date and 3,179% over the past year. The move comes ahead of SanDisk’s next earnings release, scheduled for Aug. 5 after the market closes, and traders are aggressively positioning for another blowout report.
The setup is unusually loaded. Polymarket assigns a 94.5% probability that SanDisk beats consensus when it reports on Aug. 5, and Benzinga flagged SNDK as having the highest implied earnings move of any large cap this week, with an expected swing of up to 17.47%. Reddit sentiment has flipped sharply, with the “SNDK Holders, we’re so back!!” post catalyzing a retail reversal after shares fell around 20% over the past month.
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Why the Move Matters
Last quarter set the bar. SanDisk posted Q3 FY26 EPS of $23.41 versus a $14.66 estimate on revenue of $5.95 billion, up 251% year over year, with data center revenue surging 645%. Guidance calls for Q4 revenue of $7.75 billion to $8.25 billion and non-GAAP EPS of $30 to $33, fueled by an AI-driven NAND shortage analysts see persisting through 2028.
The Profit Angle
Wall Street’s average target sits at $2,217.77, with 18 Buy ratings against just 1 Sell. Forward P/E is 19, cheap for a company that has beaten EPS four straight quarters.
Key risks: The recent pre-earnings rally raises the bar, and the consumer segment softened sequentially. Keep an eye on the Wednesday report and any commentary on new multi-year hyperscaler contracts.
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Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
