SanDisk shares rebound about 4% in November 6 session as technology stocks recover
Key Facts
SanDisk shares rebounded about 4% during the November 6 session, according to a Fox Business report, as technology stocks recovered. The move came amid expectations about the impact of Texas regulatory policies on data center expansion, a market where the company said activity was growing rapidly. That did not confirm that all projects would proceed, as a Texas Tribune report said approvals could remain on hold until lawmakers pass new laws the following year. Investor concerns were tied to the possibility that restrictions could affect projects related to demand for storage products. These developments put SanDisk’s performance in a context combining business growth with unresolved regulatory risks.
Ahead of the November 6 session, SanDisk reported fiscal first-quarter 2027 revenue of $11.0 billion, up 23% sequentially. The company said GAAP net income was $8.1 billion in the same quarter, and diluted earnings per share were $52.60. Chief Executive David Goeckeler described demand for the company’s products as "strong and growing," adding that it was driving faster growth in its data center business. The results provide a financial backdrop to the share move, showing revenue expansion alongside growth in data center-related activity. But they do not resolve how any future restrictions on projects in Texas could affect demand or the company’s business.
The regulatory review traces back to Texas Gov. Greg Abbott’s August 3 directive to the Public Utility Commission and the Electric Reliability Council of Texas to verify and audit data center projects before allowing them to advance through the grid-connection process. In a subsequent notice, the council requested information on community impact from project operators whose requested loads range from 25 megawatts to less than 75 megawatts. It set October 12, 2026, as the deadline for responses. The state also requested an audit of data center water sources and consumption, as well as water conservation technologies. The governor’s office said the review covers electric infrastructure financing, water reuse, energy supply, and disclosure of projected electricity demand and water sources.
On the political front, the Associated Press reported that midterm election results, including Democratic victories in states such as Texas, could strengthen regulatory restrictions on data centers. The agency said voter concerns included electricity and water prices, and cited Morgan Stanley’s description of Gina Hinojosa’s election as Texas governor as the "most important election result" for data center development. In its report published on November 4, the Texas Tribune said approvals could remain on hold until lawmakers enact new laws the following year. Hinojosa’s stated priorities included requiring data center operators to hire union workers and protecting communities’ water supplies. The trajectory of projects remains tied to the provisions of new laws and the results of ongoing reviews.
On the corporate actions front, SanDisk announced that November 9, 2026, is the record date for shareholders eligible for the stock split, with split-adjusted trading expected to begin on November 20. Under the split, a shareholder receives 7 additional shares for each share owned. The company said the action does not directly change the total value of the shares immediately after it takes effect. On data centers, the Electric Reliability Council of Texas expects to publish a report on the review of submitted information by December 10, 2026, at the latest. That date marks a later milestone in the review of the projects’ impacts, while upcoming legislative decisions remain part of the regulatory uncertainty.