Is SanDisk Stock Worth More Than Its Competitors?

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SanDisk (SNDK) grew revenue faster over its latest four quarters than any of its five storage and chip peers. Yet its shares trade at 6.5 times earnings, the lowest multiple of the six. The price appears to assume that SanDisk’s higher memory prices and the growth in its data center sales will not last. So is SanDisk worth more than its rivals?

How SanDisk Stacks Up Against Seagate And Micron

SanDisk’s lead on growth is wide over every peer but Micron. Its revenue rose 272.4% over its latest four fiscal quarters from the four before, against 44.4% at Seagate Technology, a storage hardware maker like SanDisk. Yet you pay far more for Seagate: 26 times earnings.

Every other peer also grew more slowly and trades at a higher P/E. Micron Technology, a semiconductor company, comes closest, at 256.3%. It is the only one with a higher operating margin over each company’s latest four quarters, 74.6% against SanDisk’s 72.7%. Even Micron trades at 9.6 times earnings.

Are SanDisk’s Higher Prices Holding Up?

So far, yes. SanDisk makes NAND flash, the memory that stores data in smartphones, PCs and the enterprise SSDs that data centers buy. On the October 29 call, management said about 40% of the rise in fiscal Q1 2027 revenue came from higher prices, and the company expects prices to keep rising modestly through the year. SanDisk reported an operating margin of 79.6% in that quarter, compared with 8.3% a year earlier.

Higher prices have started to cost SanDisk some buyers, though. Consumer revenue fell 29% from the quarter before. Management attributed the decline to the market adjusting to higher pricing.

How Much Of SanDisk’s Supply Is Under Long-Term Deals?

Management said on the same call that new long-term partnership deals cover about half the memory SanDisk ships in fiscal 2027, and about two-thirds of the supply for fiscal 2028. Data center sales reached $4.8 billion in fiscal Q1 2027, up 61% from the prior quarter. SanDisk’s customers in that market include three U.S. hyperscalers.

For fiscal Q2 2027, management guided revenue of $12.2 billion to $12.6 billion, after $11.0 billion reported in fiscal Q1 2027. SanDisk is expected to report that quarter in January 2027. Management also said its fiscal third quarter normally shows its weakest change from the prior quarter, and told analysts to be conservative about growth from fiscal Q2 to fiscal Q3 2027.

SanDisk Posted A Net Loss Just A Year Earlier

In the twelve months to October 3, 2025, SanDisk lost $1.74 billion, compared with a profit of $19.4 billion in the twelve months since. That means its low P/E is measured on a level of profit the company has reached only in the past year. Its shares have also fallen 42.2% in the month to November 10, while the S&P 500 lost 3.6%.

If SanDisk’s prices fall back or its data center customers buy less, the profit behind that multiple would shrink, and so would SanDisk’s lead over its rivals.

SanDisk is still raising its prices and has put much of its future supply under long-term deals. Its prices are the less certain part, since consumers are already buying less at higher prices. To keep its lead over its rivals, SanDisk has to keep charging more while its data center sales grow. The company did both in fiscal Q1 2027. SanDisk’s operating margin for fiscal Q2 2027 is the number to watch at its January report.

Not Sure SanDisk Is Worth It At This Price?

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