Overview
- Sandisk reported a blowout quarter with revenue of $11.03 billion, very high non‑GAAP gross margins (85.1%) and $5.7 billion in adjusted free cash flow.
- Management raised guidance and announced an 8‑for‑1 stock split, a move that changes share count but does not alter underlying company finances.
- Despite the beat and the split, the stock fell about 13% on heavy selling that market commentators tied to short‑term investor concerns rather than the quarter’s cash metrics.
- A Seeking Alpha analysis highlights a large contract backlog reported by the company—cited as $93.9 billion in minimum revenue with $16.5 billion guaranteed—as a key buffer against downside.
- The analyst recommends SNDK as a ‘Strong Buy’ while disclosing a personal long position and identifying an extreme, sustained collapse in NAND flash prices as the primary risk to the thesis.