Sandisk announced an 8-for-1 forward stock split with the company's fiscal first-quarter 2027 results. Shareholders registered on November 9 will get seven extra shares per existing share. Sandisk expects split-adjusted trading to start November 20.
Sandisk closed October 29 at $1,330.05, equivalent to approximately $166.26 per share after the split. An investor with 10 shares would hold 80 shares after the split without any change in the holding's total value. The split creates no additional value and does not reduce Sandisk's fundamental valuation. The lower per-share price could improve access for retail investors and employees using Sandisk's stock purchase plan.
Sandisk recorded fiscal first-quarter 2027 revenue of $11.03 billion, increasing 23% from the previous quarter and 378% from a year earlier. Sandisk reported non-GAAP earnings per share of $49.51. Sandisk's gross margin was 85.1%.
Data-center revenue increased 61% from the previous quarter to $4.8 billion. Data-center sales represented roughly 44% of total revenue. The edge business, including storage for PCs and smartphones, generated $5.83 billion, an increase of 7%. Consumer revenue declined 29% to $397 million. Growth is increasingly concentrated in enterprise and AI-related demand.
Sandisk forecasts second-quarter revenue between $12.2 billion and $12.6 billion. Sandisk forecasts non-GAAP earnings per share between $55 and $57. Sandisk presented both forecasts on a pre-split basis.
JPMorgan analyst Harlan Sur maintains an Overweight rating and a $2,250 price target for Sandisk. The target implies approximately 69% upside from Sandisk's October 29 closing price. The equivalent post-split target would be $281.25. Sur bases the investment case on long-term customer agreements that improve visibility into pricing and demand.
Sandisk expects New Business Model agreements to cover roughly 50% of fiscal 2027 bit shipments. Sandisk expects those agreements to cover 66% of fiscal 2028 bit shipments. Sandisk has said demand from customers exceeds available supply through the decade's end. AI workloads require increasingly capable storage as well as computing power.
The split may let investors purchase Sandisk shares in smaller increments. However, the more consequential question is whether earnings can grow sufficiently to support Sandisk's valuation. JPMorgan's target reflects considerable optimism, whose durability depends on Sandisk turning AI demand into sustained growth.
Sandisk Announces 8-for-1 Stock Split, JPMorgan Sees 69% Upside
BenzingaShare
Summary
Sandisk announced an 8-for-1 stock split, effective with fiscal Q1 2027 results. Shareholders on the November 9 register will get seven extra shares per existing one, with split-adjusted trading starting on November 20. The stock closed at $1,330.05 on October 29, or $166.26 post-split. JPMorgan’s Harlan Sur keeps an Overweight rating and a $2,250 target, suggesting a 69% upside from the October 29 close. Post-split, that’s $281.25. Sur cites long-term customer deals for pricing and demand visibility as key. Sandisk’s Q1 2027 revenue rose 23% from prior quarter and 378% from a year ago to $11.03 billion. This on-chain news could influence crypto price news.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.