Why Sandisk Rallied in November

• Sandisk rallied successful November adjacent arsenic galore AI-related stocks sold off.

• NAND flash retention prices are successful their archetypal bull marketplace successful years.

• The banal appears inexpensive adjacent aft a 500%-plus tally this year, but successful this industry, P/E ratios tin beryllium deceiving.

• 10 stocks we similar amended than Sandisk ›

Shares of NAND flash thrust shaper Sandisk (NASDAQ: SNDK) rallied 12% successful November, according to information from S&P Global Market Intelligence.

Sandisk came into November already having posted tremendous gains successful 2025, truthful to spot it admit different 12% versus a comparatively level S&P 500 was genuinely impressive.

We are experiencing a historical proviso crunch regarding representation and storage, arsenic the generative AI gyration drives request successful some information centers and astatine the edge, wherever NAND outshines different retention mediums arsenic the preferred choice.

Sandisk's beardown third-quarter net and guidance released connected November 6 were a reflection of that.

In the 3rd quarter, Sandisk saw gross emergence 23% year-over-year arsenic flash prices stabilized. While net per stock really declined 33% year-over-year, this was owed to industry-standard start-up costs associated with ramping up Sandisk's caller BiCS8 technology.

Still, the quarter-over-quarter momentum was strong, with adjusted (non-GAAP) net per stock expanding by 321%, from $0.29 to $1.22 per share. Both gross and adjusted net bushed expectations.

Furthermore, absorption guided for beardown sequential maturation to continue, forecasting $2.55 cardinal to $2.65 cardinal successful gross and betwixt $3.00 and $3.40 successful adjusted earnings, which would magnitude to 162% sequential maturation astatine the midpoint.

Memory and retention manufacturers are experiencing a important net roar due to the fact that galore of their costs are fixed, owed to the precocious costs associated with gathering and owning ample accumulation fabs. So erstwhile representation oregon retention prices emergence oregon stabilize -- prices per spot usually diminution implicit the agelong word -- overmuch of those gains autumn consecutive to the bottommost line.

NAND flash prices person been successful a peculiarly terrible oversupply for years now, arsenic the vertical stacking of NAND bits has made it excessively casual for each 5 large players to summation supply. Yet, conscionable arsenic large manufacturers began to chopped backmost connected supply, AI inferencing astatine the edge, combined with this year's PC rebound, is starring to an unexpected surge successful demand.

Analysts present expect $20.21 successful fiscal 2027 net per share, which would lone enactment the banal astatine 10.2 times adjacent year's net estimates. That whitethorn look incredibly inexpensive to tech investors, particularly since the banal has risen an awesome 505% this year.