Shares in Sandisk (NASDAQ:SNDK) jumped more than 20% in premarket trading on Friday after the data storage specialist delivered a fiscal second-quarter performance that far exceeded expectations and unveiled third-quarter guidance that caught the market off guard.
For the quarter, Sandisk posted adjusted earnings of $6.20 per share, almost double the $3.49 forecast by analysts. Revenue reached $3.03 billion, comfortably ahead of the $2.67 billion consensus and representing a 31% increase from the previous quarter. The stock’s latest surge builds on an extraordinary run: shares climbed 559% last year on the back of booming AI-driven demand and are already up a further 127% year-to-date based on Thursday’s close.
Growth was led by the datacenter segment, where revenue rose 64% sequentially. The company attributed the jump to “strong adoption among AI infrastructure builders, semi-custom customers, and technology companies deploying AI at scale,” according to its earnings statement. Chief executive David Goeckeler said the results highlight Sandisk’s ability to capitalise on shifting demand.
“This quarter’s performance underscores our agility in capitalizing on better product mix, accelerating enterprise SSD deployments, and strengthening market demand dynamics,” he said.
“Our structural reset to align supply with attractive, sustained demand positions us to drive disciplined growth and deliver industry-leading financial performance.”
Looking ahead, Sandisk forecast third-quarter revenue of between $4.4 billion and $4.8 billion, dramatically above the $2.92 billion analysts had been expecting. Adjusted earnings per share are projected at $12.00 to $14.00, compared with a consensus estimate of $4.21. Even the midpoint of the revenue range implies a 73% sequential increase, pointing to rapidly accelerating momentum, particularly in AI-focused storage solutions.
Analysts reacted positively to the update. Morgan Stanley’s Joseph Moore said the company’s earnings strength continues to justify the sharp rise in the share price.
“Despite a persistent march higher in Sandisk shares, earnings power continues to keep pace,” he said in a post-results note.
“At still a sub 10x PE on where numbers are likely headed we see a sustained bid for the stock despite the rally,” Moore added, lifting his price target to $690 from $483.
Raymond James analyst Melissa Fairbanks echoed the upbeat tone, noting that “even after the recent move — up more than 16x since the spin-off from Western Digital a year ago,” she still sees room for further gains, driven by demand and pricing tailwinds from what she described as an “unprecedented datacenter/AI cycle.”