Bloomberg Surveillance · Friday, September 4, 2026
Memory chip companies are trading at low multiples of forward earnings, such as 3-5 times, despite doubling earnings quarter-over-quarter. Analysts are struggling to establish a normalized earnings level for valuation due to the unprecedented growth rates.
“I'm valuing Sandisk on 11 times forward earnings. It's currently trading around five times.”
“All these memory companies are trading three, four, five times forward earnings right now.”
“The street investors just don't know what's the kind of normalized level of earnings. So, we try to take a stab at that and put a multiple on that.”