SanDisk forecasts massive profit surge as AI storage demand drives flash storage boom

Sandisk forecasts profit surge, secures supply deal as AI fuels storage demand

The data storage firm forecast fiscal third-quarter revenue with a midpoint of $4.6 billion and adjusted profit with a midpoint of $14 per share. Both were above estimates of $2.77 billion and $4.37 apiece, respectively, according to LSEG-compiled data. Sandisk on Thursday predicted profits and sales well above Wall Street estimates and extended a major supply agreement, riding ⁠a surge in artificial-intelligence-driven demand for data storage. The data storage firm forecast fiscal third-quarter revenue with a midpoint of $4.6 billion and adjusted profit with a midpoint of $14 per share. Both were above estimates of $2.77 billion and $4.37 apiece, respectively, according to LSEG-compiled data. Silicon Valley-based Sandisk supplies flash storage memory, the basis for solid-state drives that hold massive amounts of data inside AI data centers. While most of a burgeoning global shortage of memory chips has focused on DRAM, the faster type of memory chip that sits closer to a computer's processor, AI is also increasing demand for flash storage, Sandisk CEO David Goeckeler told Reuters. Large AI firms are building data centers for what is known as "inference," when AI models answer questions from users, a process that requires feeding stored data into computing chips. Sandisk's forecast reflects the fact that those firms are willing to spend money amid tight flash storage supplies to keep their plans on track. "Customers prefer supply over price," Goeckeler said. Sandisk reported sales and adjusted profits of $3.3 billion and $6.20 per share for the just-ended fiscal second quarter, above estimates of $2.64 billion and $3.33 per share, respectively, according to LSEG-compiled data. Sandisk secures ⁠its flash chip ⁠supply through a joint venture with Kioxia Corp in Japan. "We have incredible capacity in Japan that we've been investing in, and we continue to invest in. Now we're signed up together for another nine years," Goeckeler said. "So that's our capacity plan going forward." The companies said that they have extended their supply agreement through the end of 2034, from its previous expiration at the end of 2029.

SanDisk Breaks Out as AI Storage Demand Drives Margin Expansion | Investing.com UK

SanDisk Corporation (NASDAQ:SNDK) shares rocketed over 19% in premarket trading on Friday, January 30, 2026, following exceptional fiscal second quarter 2026 earnings that dramatically exceeded Wall Street expectations. The storage solutions provider reported adjusted earnings per share of $6.20, nearly doubling the analyst estimate of $3.49, while revenue reached $3.03 billion versus expectations of $2.67 billion. The company's third-quarter guidance proved equally stunning, with projected revenue of $4.4-$4.8 billion and adjusted EPS of $12.00-$14.00, far surpassing consensus estimates of $2.92 billion and $4.21 respectively. Sandisk's fiscal second quarter 2026 performance showcased the company's dominant position in AI-driven storage solutions. Revenue climbed 31% sequentially to $3.03 billion, with datacenter revenue jumping 64% quarter-over-quarter, fueled by strong adoption among AI infrastructure builders and technology companies deploying AI at scale. The company reported GAAP net income of $803 million ($5.15 diluted EPS) and Non-GAAP net income of $967 million ($6.20 diluted EPS), reflecting gross margins that expanded dramatically to over 50%. CEO David Goeckeler emphasized the company's strategic positioning, stating that the quarter's performance underscores their agility in capitalizing on improved product mix, accelerating enterprise SSD deployments, and strengthening market demand dynamics. The company's structural reset to align supply with sustained demand has positioned Sandisk to deliver industry-leading financial performance. Year-over-year comparisons proved equally impressive, with revenue up 61% and operating income surging 446% compared to Q2 FY2025. In premarket trading at 5:50 AM EST on January 30, 2026, SNDK shares jumped to $644.00, up $104.70 or 19.41% from the previous close of $527.63. The stock has experienced extraordinary momentum, surging 559% in 2025 and climbing an additional 127% year-to-date based on Thursday's close. The dramatic rally reflects investor enthusiasm for the company's exposure to booming AI-driven storage demand, with the stock's 52-week range expanding from $27.89 to $546.75. Analysts have responded enthusiastically to the results, with multiple firms raising price targets significantly. Morgan Stanley analyst Joseph Moore raised his target to $690 from $483, noting that despite the persistent march higher in share price, earnings power continues to keep pace, and at a sub-10x PE ratio on forward estimates, he sees sustained upside. Raymond James analyst Melissa Fairbanks highlighted that even after rallying more than 16x since the spin-off from Western Digital a year ago, further upside remains driven by an unprecedented datacenter/AI cycle. Mizuho set a new street-high price target of $600, citing massive NAND pricing tailwinds and robust AI demand. *** Looking to start your trading day ahead of the curve?

Sandisk forecasts profit surge, secures supply deal as AI fuels storage demand

SAN FRANCISCO, Jan 29 (Reuters) - Sandisk on Thursday predicted profits and sales well above Wall Street estimates and extended a major supply agreement, riding a surge in artificial-intelligence-driven demand for data storage. The data storage firm forecast fiscal third-quarter revenue with a midpoint of $4.6 billion and adjusted profit with a midpoint of $14 per share. Both were above estimates of $2.77 billion and $4.37 apiece, respectively, according to LSEG-compiled data. Silicon Valley-based Sandisk supplies flash storage memory, the basis for solid-state drives that hold massive amounts of data inside AI data centers. While most of a burgeoning global shortage of memory chips has focused on DRAM, the faster type of memory chip that sits closer to a computer's processor, AI is also increasing demand for flash storage, Sandisk CEO David Goeckeler told Reuters. Large AI firms are building data centers for what is known as "inference," when AI models answer questions from users, a process that requires feeding stored data into computing chips. Sandisk's forecast reflects the fact that those firms are willing to spend money amid tight flash storage supplies to keep their plans on track. "Customers prefer supply over price," Goeckeler said. Sandisk reported sales and adjusted profits of $3.3 billion and $6.20 per share for the just-ended fiscal second quarter, above estimates of $2.64 billion and $3.33 per share, respectively, according to LSEG-compiled data. Sandisk secures its flash chip supply through a joint venture with Kioxia Corp in Japan. "We have incredible capacity in Japan that we've been investing in, and we continue to invest in. Now we're signed up together for another nine years," Goeckeler said. "So that's our capacity plan going forward." The companies said that they have extended their supply agreement through the end of 2034, from its previous expiration at the end of 2029. (Reporting by Stephen Nellis in San Francisco; Editing by Sherry Jacob-Phillips)