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AI Storage Boom Delivers Blowout Results for SanDisk and Western Digital

Investors now weigh rich valuations against how long AI-fueled pricing can hold.

Overview

  • SanDisk, which reported results Thursday, posted Q3 revenue of $5.95 billion with adjusted EPS of $23.41 and guided Q4 to $7.75–$8.25 billion and $30–$33 per share.
  • SanDisk said it signed multi-year supply deals that imply at least $42 billion in minimum revenue and authorized a $6 billion share buyback to bolster visibility and returns.
  • Western Digital reported Q3 revenue of $3.34 billion and EPS of $2.72 and projected about $3.65 billion in Q4 sales, citing strong orders for data-center storage tied to AI.
  • Shares of both companies slipped in extended trading after the reports as traders took profits, even as several analysts raised price targets on the stronger outlooks.
  • Explosive demand from generative AI is tightening supply and lifting prices for flash memory and high-capacity hard drives, yet the historically cyclical storage market keeps sustainability in question.