Should You Buy Sandisk Stock Before It Reports Earnings on Aug. 5?

Should You Buy Sandisk Stock Before It Reports Earnings on Aug. 5?


sandisk (NASDAQ: SNDK) has been one of many hottest growth stocks of the yr (up 579%), nevertheless it’s down by greater than 31% from its June 2026 all-time excessive. Where does that go away buyers heading into Sandisk’s Aug. 5 earnings report?

There are some hints that Sandisk will ship blockbuster outcomes when it releases its report. These are the inexperienced flags buyers ought to take note as Aug. 5 attracts nearer.

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Micron often forecasts Sandisk’s earnings

memory chips are gaining substantial traction, and Micron Technology (NASDAQ: MU) proved that was the case when it reported its fiscal 2026 third-quarter outcomes. These outcomes are a reasonably large deal for Sandisk buyers because the firm has been rising quicker than Micron in current quarters.

Micron greater than quadrupled its income yr over yr, crushing its steering within the course of. The reminiscence chipmaker additionally delivered greater than 70% sequential progress. Guidance solely instructed $33.5 billion in income on the midpoint, which might have been roughly a 40% sequential enchancment.

With this vital context, let’s take a more in-depth take a look at Sandisk’s outcomes for the fiscal 2026 third quarter, which ended April 3. Revenue virtually doubled sequentially, outpacing the expansion fee Micron exhibited in its groundbreaking quarter. For Q3, Sandisk implied $4.6 billion in income on the midpoint of steering and ended up reporting $5.95 billion.

Sandisk guided by $8 billion in income on the midpoint of its fiscal 2026 fourth-quarter outcomes. Recent historical past and Micron’s outcomes recommend that Sandisk will smash steering. Micron’s $41.5 billion in income shocked probably the most ardent bulls, and the corporate then guided for $50 billion within the following quarter.

If Sandisk continues to comply with the sample of crushing steering, its current dip seems to be like a compelling shopping for alternative.

The reminiscence chip increase is not fading

Memory chips are cyclical, and provide shortages can shortly flip into stock gluts. That has been the narrative for a number of a long time, and it might clarify why reminiscence chipmakers noticed their share costs drop simply after Micron reported earnings, however the AI ​​build-out is sort of distinctive.

Companies with actual income and rising AI capability wants are fueling the increase, which makes the dot-com comparability illegitimate. Furthermore, Micron introduced it was coming into multiyear strategic agreements with prospects. This multiyear setup makes the corporate much less prone to the bust a part of the reminiscence chip cycle. Competitors like Sandisk are prone to comply with go well with, which may make the present dip engaging.

Moreover, Alphabet boosted its capital expenditures goal but once more. The firm intends to spend as much as $205 billion on capital expenditures this yr, and a few of that cash must go to reminiscence chips like those Sandisk creates.

These are long-term tailwinds that ought to proceed to propel Sandisk inventory to new highs. Expect a beat-and-raise sort of quarter. It’s only a matter of how a lot Sandisk beats its steering for This autumn and what the corporate tells buyers about its upcoming fiscal 2027.

Should you purchase inventory in Sandisk proper now?

Before you purchase inventory in Sandisk, think about this:

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Marc Guberti has no place in any of the shares talked about. The Motley Fool has positions in and recommends Alphabet and Micron Technology. The Motley Fool has a disclosure policy.

Should You Buy Sandisk Stock Before It Reports Earnings on Aug. 5? was initially revealed by The Motley Fool

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