Should You Buy Sandisk Stock at About 5 Times Its Guided Earnings?

Sandisk announced an 8-for-1 stock split and reported 23% sequential revenue growth to $11.0 billion in fiscal Q1 2027, driven primarily by data center demand. However, the company's growth is decelerating as pricing gains slow—only 40% of sequential growth came from price increases versus 60% from volume. Trading at ~5x guided earnings, the stock appears to price in expectations of profit decline when memory prices normalize. The analyst suggests starting a small position but warns the stock is volatile and best suited for risk-tolerant investors.