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The main event after the close is storage, with Sandisk and Western Digital reporting at a crucial point for the AI trade.
Both stocks have been among the market’s biggest winners this year (SNDK is #1 up +400% YTD), driven by shortages, rising prices and explosive data-centre demand. They have also pulled back sharply from their June highs, so tonight’s numbers will test whether that was healthy profit-taking or the beginning of a turn in the cycle.
Notably, SanDisk was also the top holding at Situational Awareness before it collapsed and that might have created artificial selling.
For Sandisk, expectations are enormous. The consensus is $8.5 billion in revenue and $34.60 in adjusted EPS after data-centre revenue rose 233% sequentially last quarter. The most important details will be NAND pricing, supply discipline, long-term customer agreements and whether management signals that earnings can remain near these extraordinary levels. An investor day follows next week, which may limit how much longer-term guidance comes tonight. In terms of valuation, if the company hits the consensus it puts it at 10x annualized earnings but there is a fair bit of acceleration baked in with next quarter seen at $46.33 and next year at $210.88, putting the foward P/E at 6.70. My guess is that to sustain the momentum, we will need a substantial beat and strong guidance. That said, the turnaround in fortunes in this company is almost unprecedented as it earned just $2.99/share in the fiscal year ending in June 2025.
Western Digital is the cleaner hard-drive and mass-storage play. Wall Street expects approximately $3.7 billion in revenue and $3.30–$3.35 in adjusted EPS. Cloud demand, gross margins and customer commitments for 2027 will matter more than the headline beat. The market wants confirmation that hyperscaler storage spending remains strong and that additional supply won’t quickly erode pricing.
Behind those two, AppLovin remains a major volatility candidate, while MercadoLibre offers a read on Latin American consumption, payments and credit quality. Axon, e.l.f. Beauty, TTM Technologies and Redwire round out a strong growth calendar, while Albemarle is a lithium-price story and Beyond Meat remains primarily a balance-sheet and survival story (what a downfall).
This article was written by Adam Button at investinglive.com.
