Sandisk Announces $14 Billion Stock Buyback Authorization Amid Strong Performance
Sandisk has announced a new $14 billion stock buyback authorization, increasing its total remaining repurchase capacity to $15.5 billion—more than 7% of the company's market cap as of this writing. The move follows strong performance in fiscal Q4 and rising demand for memory chips driven by AI infrastructure spending. Management is returning profits to shareholders amid a shortage that has allowed Sandisk and its peers to raise prices significantly. Warren Buffett, known for his cautious approach to stock buybacks, warns investors not all repurchases are beneficial long-term. He emphasizes the importance of price discipline in share repurchase programs, stating they should only occur when shares trade below intrinsic value. This caution is particularly relevant as Sandisk's stock has surged 535% so far this year.
Tickers: $SNDK
Topics: Sandisk share repurchase stock buyback Warren Buffett