SanDisk’s Stock Skyrockets Following Exceptional Earnings, Fueled by AI Demand
SanDisk, a leading memory chip manufacturer, sent shockwaves through Wall Street this Thursday. The company’s stock surged by over 14% in response to an extraordinary fiscal second-quarter earnings report. This report significantly surpassed analyst expectations, primarily due to an unprecedented demand from artificial intelligence infrastructure.
The flash storage company reported an adjusted earnings per share of $6.20 for the second quarter. This figure is nearly double the analyst estimate of $3.49. Revenue reached $3.03 billion, significantly exceeding the consensus estimate of $2.67 billion. This represents a 31% sequential increase. The company’s datacenter revenue saw a 64% sequential increase. CEO David Goeckeler attributed this to “strong adoption among AI infrastructure builders, semi-custom customers, and technology companies deploying AI at scale.”
SanDisk’s guidance for the third quarter was particularly noteworthy, taking analysts by surprise. The company forecast revenue between $4.4 billion and $4.8 billion, with an adjusted profit in the range of $12-$14 per share. The midpoints of both ranges were more than double analyst expectations. This guidance suggests that the company is experiencing a surge in momentum in AI-related storage solutions.
The memory shortage affecting the global tech sector has given SanDisk significant pricing power. The company expects third-quarter gross margins to range between 65% and 67%, far ahead of the 49.3% expected by analysts. SanDisk also announced an extension of its supply agreement with joint venture partner Kioxia Corp through the end of 2034, securing its flash chip supply for the foreseeable future.
Following the earnings release, at least five brokerages raised their price targets on the stock. Bernstein’s call of $1,000 was among the highest on Wall Street. The stock has already risen more than 127% in January alone, building on a 559% gain in 2025. This makes it one of the best-performing stocks in the S&P 500.
Source: CNBC