Prediction: Sandisk Stock Will Soar After Oct. 29. Here Are 379 Billion Reasons Why

Sandisk (NASDAQ:SNDK) stock has fallen from grace in recent months after delivering a stunning performance in the first half of 2026.

Shares of the flash storage specialist have pulled back 32% since the beginning of July. For comparison, Sandisk stock rose by a stunning 858% in the first half of 2026. The recent slide in Sandisk stock has nothing to do with the company's financial performance. Investors have pressed the panic button and are booking profits in Sandisk amid concerns about the sustainability of the artificial intelligence (AI) infrastructure build-out.

However, a closer look at the developments in the NAND flash industry suggests that the fears about a slowdown in Sandisk's growth are overblown. In fact, I won't be surprised to see the company deliver stronger-than-expected fiscal 2027 first-quarter results on Oct. 29.

Let's check the reasons why Sandisk stock could take off following its upcoming quarterly report.

Image source: Getty Images.

Sandisk's growth and potential don't justify its slide

The incredible demand for NAND flash storage in AI data centers has been Sandisk's biggest growth driver. The resulting supply shortage has led to a massive increase in NAND flash prices, which explains the red-hot growth in Sandisk's revenue and earnings.

The company expects fiscal Q1 revenue of $10.3-$10.8 billion, along with non-GAAP earnings of $45.00 per share. The guidance implies a year-over-year increase of 357% in revenue at the midpoint, along with a 37x jump in non-GAAP earnings per share. Market research firm TrendForce expects NAND flash prices to surge by 235% in 2026, which explains why Sandisk is anticipating such phenomenal growth in fiscal Q1.

Even better, analysts expect Sandisk to sustain its red-hot growth in the current quarter as well. Consensus estimates on Yahoo! Finance predict a 4x year-over-year increase in Sandisk's revenue in the current quarter to $12.2 billion. Meanwhile, earnings per share could increase by 8x to $52.94. So, the recent slide in Sandisk's stock price isn't justified when we consider that the strong NAND flash demand and price environment will continue to remain a tailwind for the company.

Moreover, the NAND flash market is poised for further growth in 2027. TrendForce expects NAND flash industry revenue to reach $379 billion in 2027, up 40% from this year. Of course, the market's growth rate is expected to slow substantially next year compared with 2026's estimated 280%, but that's still a healthy number.

Importantly, Sandisk can make the most of this huge opportunity given that it controls 11% of the NAND flash market, according to Counterpoint Research. A similar share of this market at the end of 2027 could send Sandisk's revenue in calendar 2027 to almost $42 billion, double the revenue it has generated over the past twelve months.

So, Sandisk seems poised to grow at a robust pace over the next year and a half, given the incredible $379 billion addressable opportunity it is sitting on. Throw in the fact that the NAND flash industry will remain undersupplied in 2027 and 2028, according to Citi, and Sandisk should also be able to clock healthy earnings growth.

This probably explains why there has been a slight uptick in Sandisk's earnings per share expectations for the current and the next fiscal year.

SNDK EPS Estimates for Current Fiscal Year data by YCharts

A stronger-than-expected outlook can supercharge the stock

One of the reasons why this AI stock has been under pressure lately is because of concerns that NAND flash supply growth will overtake demand next year. This could erase the pricing advantage that Sandisk has been enjoying.

However, the points discussed above suggest otherwise. Additionally, robust NAND flash demand from AI servers could lead to a sequential increase of 15%-20% in NAND flash contract prices in the current quarter, according to TrendForce. This is why I think Sandisk's guidance for the ongoing quarter may exceed expectations, giving the stock a much-needed boost.

Another reason why Sandisk seems like a no-brainer buy right now is that it trades at an extremely cheap 8 times forward earnings. The S&P 500 index, for comparison, has a forward earnings multiple of 19. Sandisk should ideally trade at a significant premium given its exponential growth rate. So, it makes sense for savvy investors to buy this growth stock before Oct. 29 as strong results and a sunny guidance could set it up for a strong finish to the year.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.