Chip stocks fall with Nvidia after data center rev disappointment
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $50.00 price target on SanDisk (NASDAQ:SNDK), currently trading at $46.37 with a strong 28.81% gain year-to-date. According to InvestingPro data, analyst targets range from $39 to $70, with a consensus recommendation leaning towards Buy.
The research firm noted that market expectations for overall exabytes (EBs) in calendar year 2025 are only modestly higher at 1,050EB, representing 15% growth, compared to pre-earnings expectations of 1,029EB, or 12% growth.
This adjustment amounts to just 22 additional exabytes, representing an extra 2% year-over-year increase in bits shipped, according to Cantor Fitzgerald’s analysis.
Despite these adjusted expectations for the second half of the year, the firm sees limited impact to the supply/demand balance and continues to anticipate a favorable pricing environment extending into next year.
Cantor Fitzgerald highlighted SanDisk’s current valuation as attractive, noting that the company trades at approximately 0.8 times enterprise value to sales based on the firm’s calendar year 2026 revenue estimates. This assessment is supported by InvestingPro’s Fair Value analysis, which indicates the stock is currently fairly valued. For deeper insights into SanDisk’s valuation metrics and over 30 financial health indicators, check out the comprehensive InvestingPro Research Report.
In other recent news, SanDisk reported impressive financial results for the fourth quarter of fiscal year 2025, with revenue reaching $1,901 million. This marks a 12% increase from the previous quarter and an 8% rise year-over-year. The company’s non-GAAP earnings per share (EPS) exceeded expectations at $0.29. Despite these strong results, analysts have expressed some concerns. Cantor Fitzgerald maintained an Overweight rating with a $50 price target, citing lower EPS guidance for the upcoming September quarter due to a 14-week quarter that increases expenses. Meanwhile, Goldman Sachs reiterated its Buy rating with a $55 price target, acknowledging SanDisk’s strong revenue performance but noting potential investor concerns over lower margin guidance for the third quarter. These developments highlight the mixed reactions from analysts despite SanDisk’s robust earnings report.
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