Stanley Druckenmiller Just Exited Sandisk Stock. Should You Buy SNDK After Its Blowout Earnings?

Stanley Druckenmiller’s Duquesne Family Office made headlines with its latest 13F filing. The fund initiated new holdings in the financial space, including Goldman Sachs, and exited existing holdings like Sandisk (SNDK). The filing comes at a time when the stock in question, Sandisk, is rallying to new highs following its blockbuster earnings report that has rekindled interest in the memory and AI storage space.

The timing of the sale by Duquesne Family Office couldn’t be worse, especially since the fund exited its position in the most recent quarter. The stock has since turned in one of the most remarkable turnarounds in the semiconductor space, driven by the accelerating AI infrastructure spend and the sharp rebound in enterprise SSD spend.

About Sandisk Stock

Sandisk is a leading flash memory storage solutions company that caters to the data storage and memory markets. Headquartered in Milpitas, California, the company currently has a market capitalization of about $95.9 billion. SNDK stock has been highly volatile in the past 52 weeks, ranging from a low of $27.89 to a high of $725. Shares currently trade at about $650, climbing rapidly on the day following the recent earnings report.

From a valuation perspective, Sandisk stock currently trades at a forward price-to-earnings (P/E) multiple of 27 times, compared to a trailing P/E multiple of 101 times, driven by depressed earnings in the past and improving earnings in the future. The stock also currently trades at a price-to-sales (P/S) multiple of 12.46 times and a price-to-book value multiple of 8.9 times, suggesting that improving earnings and improving gross margins are factored into its valuation, and that the compression in forward earnings estimates may make the stock more reasonable than the trailing numbers suggest.

Sandisk Beats Big on Earnings

Sandisk reported revenue of $3.03 billion in the fiscal second quarter of 2026, a 31% increase from the previous quarter and a 61% increase year-over-year (YOY). GAAP diluted EPS came in at $5.15, a dramatic improvement of 587% from the previous quarter and a wide increase of 615% YOY. Non-GAAP diluted EPS came in at $6.20.

The key driver in Sandisk's report was its gross margin, which expanded to 50.9% from 29.8% in the previous quarter. Operating income saw a greater than 500% increase from the previous quarter. Data center revenue increased 64% from the previous quarter, driven by high adoption rates from AI infrastructure builders and enterprise SSD customers.

Looking forward, Sandisk estimates fiscal Q3 revenue to be between $4.4 billion and $4.8 billion. Non-GAAP diluted EPS is expected to be between $12 and $14, a staggering increase from the previous quarter and a wide increase from the same period in the previous year. Gross margins are expected to continue to expand to as high as 67%.

The company is seeing a structural reset in supply, according to CEO David Goeckeler. This bodes well for Sandisk, as the firm will be able to benefit from this trend in AI and enterprise infrastructure.

What Do Analysts Expect for Sandisk Stock?

Sentiment on Wall Street remains positive. Sandisk enjoys a “Moderate Buy” consensus rating, with analysts having a positive outlook as a result of the rebound in earnings. While the mean price target of $700.94 indicates potential upside of 8% from current levels, the highest price target of $1,000 points to 54% potential upside while the lowest target of $235 points to 64% potential downside. The range of these targets points to the cyclical nature of the company's business.

While investors are considering Druckenmiller’s exit as a negative signal for Sandisk, it is evident that the company has moved from being a story of recovery to one of execution. The upcycle in memory and AI-driven storage demand evidently has legs to run, with both forward earnings and margins expanding materially.