Overview
- SanDisk reported a blowout quarter that set the run higher when it posted Q1 EPS of $23.41 and $5.95 billion in revenue on April 30, far above Street estimates.
- Barclays upgraded the stock to Overweight on May 27 and cited SanDisk’s contract model, saying three recent deals lock in about $42 billion of minimum revenue and more than $11 billion in financial guarantees.
- The upgrade and contract disclosures have prompted a wave of analyst repricing with top targets now as high as $2,350 and pushed the share price into the mid‑to‑high $1,500s after a months‑long rally.
- SanDisk has strengthened its balance sheet by recognizing $400 million in contract prepayments, holding roughly $3.7 billion net cash, and receiving an S&P upgrade to BB+.
- Key risks remain because the contracts mix near‑term fixed pricing with later variable terms that can limit short‑term upside and require precise execution, and the shift toward contracted revenue could change how the NAND cycle affects the company and its customers.