SanDisk & Western Digital Earnings: HUGE Opportunity in the Crash?
In a Nutshell
SanDisk and Western Digital report earnings tonight with high expectations—SanDisk at $34.52 EPS/$8.39B revenue, Western Digital at $3.29 EPS/$3.69B revenue—amid a market that's pulled back after an aggressive rally driven by a pending US-Iran peace deal and Strait of Hormuz reopening. Both stocks trade at elevated valuations (46x and 30x earnings), and strong beats plus bullish 2027 guidance are required to sustain levels, while any disappointment could ripple through AI and chip stocks. Markets remain irrational and bullish on the pending catalyst, making shorting risky until confirmation.
These notes were generated by AI and may contain inaccuracies.
SanDisk and Western Digital are scheduled to report earnings after the market closes. These are two of the best performing stocks of 2026. The earnings report is expected to send shock waves through the market.
Markets have erased all gains for the day, but this represents a normal pullback rather than a full-on correction. Markets have experienced one of the most aggressive four to five day rallies seen in recent times, making this pullback well expected.
The recent rally was driven by a peace deal announcement made by Trump. This type of announcement has occurred for the past 22 weeks without confirmation. Updated information indicates the deal was supposed to close today but is now expected to be announced tomorrow regarding the reopening of the Strait of Hormuz, with some reports suggesting it could extend until the end of the week.
If this news gets announced that it's confirmed that there is a reopening, markets are so irrational and so eager to remain bullish, it's only going to push up higher.
A catalyst remains pending - confirmation of the strait reopening and a peace deal between the US and Iran. Until confirmed, caution is advised as confirmation tends to drive markets higher. Shorting carries risk given the pending catalyst.
Earnings per share expectation: $34.52 Revenue expectation: $8.39 billion
SanDisk is trading at 46.4 times earnings even after its recent rally. While this valuation is high, it is not considered unbearable from a fundamental perspective.
Over the past five earnings reports, only one has resulted in a negative market reaction, giving SanDisk favorable statistical odds. However, the company will need to beat earnings by a significant margin and provide strong 2027 guidance to sustain current elevated levels.
The memory chip business is inherently cyclical with periods of high demand followed by declines. Key concerns include:
- Potential Chinese competitors undercutting prices
- Possible capex slowdown implications
- Need to demonstrate continued growth and highest-ever demand levels
The company must beat both earnings and guidance expectations by a significant margin, with no room for disappointment.
4% downside from current levels Trading at 30 times earnings Revenue: $3.69 billion Net income: $6.5 billion Earnings per share expectation: $3.29
Western Digital represents a smaller company compared to SanDisk but has also been a strong performer in 2026. The stock shows incredibly bullish patterns on larger time frames.
Western Digital and SanDisk earnings reports could send shock waves through the broader market. Strong delivery from either company could trigger additional market gains, while disappointing results could create uncertainty for other chip and AI companies already facing concerns about overspending.
Both stocks have shown significant intraday volatility with repeated movements between highs and lows, typical behavior for hyped stocks approaching major earnings announcements.
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