Sandisk Announces $14 Billion Stock Buyback Authorization Amid Strong Performance
Sandisk (NASDAQ: SNDK) 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 current market cap. The move follows strong performance in 2026 as demand for memory chips surges due to increased AI infrastructure spending. This has led to significant price increases and profitability for Sandisk and its peers. Warren Buffett, known for his cautious approach to stock buybacks, warns that repurchasing shares at a premium can be value-destructive. In Berkshire Hathaway's 2018 policy change, he emphasized the importance of buying back only when shares are undervalued relative to intrinsic worth. Sandisk investors should consider this caution as management returns profits through share repurchases. Buffett’s warning highlights that not all buybacks benefit shareholders in the long run — especially if executed at inflated prices. The key is ensuring that each transaction enhances shareholder value by acquiring stock below its true business value.
Topics: Sandisk earnings stock buybacks Warren Buffett commentary