“Why Is Sandisk Stock Crashing, and is it a Generational Buying Opportunity? | SNDK Stock Analysis”
AI summary · SNDK is a buy, with conviction raised from low to medium at these lower prices: after falls of 22% in a day and 53% in a month, it trades at $806 against his $1,808 fair value and a forward P/E of only 2.8. Results were strong ($11B revenue, up 378%, $5.7B operating cash flow) and the market already priced only a short-term boom; he models free cash flow of $31B in fiscal 2027 then very slow growth.
It was a bloody day for artificial intelligence stocks, including SanDisk, whose shares fell by more than 22% in a single day. Even worse, SanDisk's stock fell by 53% last month, even though the company announced its financial results a week ago and they were very strong.
The company generated revenues of $11 billion, an increase of 378% compared to the same period last year. The company generated operating cash flows of $5.7 billion. This means an operating cash flow to sales ratio exceeding 50%, and the valuation was already cheap before the start of this week and the results of the midterm elections.