SanDisk Corporation (SNDK) rose about 5% in pre-market trading on Wednesday, one day ahead of its fiscal first-quarter earnings report. The advance followed a record quarterly report from South Korean rival SK Hynix, whose results lifted shares across the memory sector.

Here is a closer look at the numbers behind the move and what investors are watching heading into Thursday's report.

Shares closed Tuesday at $1,304.84, up $49.26, or 4%, after trading in a range of $1,259.00 to $1,315.98. Even with the rebound, the stock remains well below its highs: it set a record closing price of $2,335 on June 25, and its 52-week high stands at $2,354.39 — leaving it roughly 46% below that peak.

SK Hynix Posts Record Quarter

The pre-market strength came after SK Hynix reported quarterly revenue above 100 trillion won for the first time. Operating profit rose more than 600% from a year earlier, producing an operating margin of 80%.

The company said NAND prices climbed at a mid-20% rate from the prior quarter and that memory supply shortages are expected to persist through 2030. For SanDisk, which sells NAND flash into that same market, the pricing and supply picture reported by its rival forms the immediate backdrop for its own results.

SK Hynix's U.S.-listed shares jumped about 8% before the open, while Micron and other AI-linked chip names also traded higher. The Nasdaq gained 0.5% and the S&P 500 added 0.2% in pre-market trading, with memory stocks outperforming the broader market.

What SanDisk Needs to Show Thursday

SanDisk reports fiscal first-quarter 2027 results after the close on Thursday, Oct. 29. Analysts expect earnings of about $46 per share on revenue near $10.6 billion.

Management has guided for revenue of $10.3 billion to $10.8 billion. The midpoint represents growth of about 18% over the $8.97 billion recorded in the prior quarter — a slower pace than recent quarters, when sequential growth ran at 97% in fiscal Q3 and 51% in fiscal Q4.

Executives expect higher storage shipments and "modest price increases" to drive growth. Micron, however, said its NAND prices rose about 30% over a comparable period, meaning SanDisk's realized pricing could come in above guidance.

Data center sales are another focal point for Thursday's report. Revenue in that segment has climbed rapidly over the past year, rising from $440 million in fiscal Q2 2026 to $1.47 billion in fiscal Q3, and then to $2.98 billion in fiscal Q4. That steep climb shows how much of SanDisk's recent growth now leans on data center demand. SanDisk does not provide guidance by end market, so Thursday's report will offer the first look at fiscal Q1 data center sales. For reference, Micron's data center SSD revenue rose more than tenfold from a year ago.

Valuation and Analyst Views

SanDisk shares have slid about 10% since Oct. 15. The stock fell more than 8% on Oct. 22, a session in which the PHLX Semiconductor Index dropped nearly 7%.

At around $1,262, SanDisk trades at roughly 18 times fiscal 2026 adjusted earnings per share of $70.88. Based on fiscal 2027 estimates, the forward multiple is about 6, compared with roughly 5 for Micron.

Investors will also watch the fiscal Q2 outlook for signs of pricing strength. The stock fell almost 7% the day after the August report, when management guided to modest price increases. With industry-wide NAND prices moving faster than SanDisk's own guided increases, the guidance issued Thursday will indicate whether management now sees stronger pricing flowing into the coming quarter.

Among analysts, Cantor Fitzgerald maintained an Overweight rating while lowering its price target to $2,200. Wedbush carries a Buy rating. Bank of America highlighted multiyear supply agreements that give SanDisk revenue visibility through 2029 and 2030. The company expects its output to remain on allocation beyond calendar 2027.

Wednesday's pre-market gains arrived one day ahead of the report.

This article originally appeared on CoinCentral.