Sandisk Shares Surge as AI Demand Drives Triple-Digit Revenue Growth

Sandisk (SNDK) shares climbed more than 11% this week following a fiscal third-quarter earnings report that shattered analyst expectations. The company reported revenue of $5.95 billion, more than tripling its year-over-year performance and significantly exceeding the consensus estimate of $4.73 billion. The surge is primarily attributed to the escalating infrastructure requirements of artificial intelligence (AI), which has created a high-growth environment for storage solutions. This trend is mirrored across the sector, with peer Seagate Technology also reporting strong gains during the same period. Profitability saw a dramatic reversal; the company posted a non-GAAP profit of $3.68 billion, or $23.41 per share, compared to a loss of $43 million in the prior year. This result far surpassed the projected $14.66 per share. Growth was led by the data center segment, which soared 645% to $1.47 billion, and edge computing, which rose 295% to $3.66 billion. The consumer segment grew a more modest 44% to $820 million. Looking ahead, Sandisk provided bullish guidance for the fourth quarter, projecting revenue between $7.75 billion and $8.25 billion. The company expects adjusted net income to range from $30 to $33 per share, both of which sit well above current market projections.