Particle.news
Download on the App Store

SanDisk Shares Rebound as AI Storage Momentum and Long-Term Deals Reset the Stock

The move suggests confidence in SanDisk’s near-term guidance despite persistent worries about NAND cycles and valuation.

Overview

  • Following April 30th results, SanDisk reported a decisive turn in performance with $5.95 billion in revenue, non-GAAP EPS of $23.41, data center sales of about $1.47 billion, and guidance for $7.75–$8.25 billion in fiscal Q4 revenue as it begins shipping QLC “Stargate” products.
  • The company now has multiple multi-year supply agreements with major cloud buyers that analysts estimate at roughly $42 billion in contracted revenue, including about $11 billion in termination protections that add earnings visibility.
  • Top firms reset targets higher after the quarter, with Goldman Sachs at $1,200, Bernstein at $1,700, Bank of America at $1,550, Cantor Fitzgerald at $1,800, and Raymond James at $1,470, citing tight supply and surging AI data center demand.
  • Shares slipped nearly 5% after cautions that steep DRAM and NAND prices were causing some device makers to pull back, then rallied about 8.5% as Bernstein highlighted major near-term price gains and reaffirmed a positive stance.
  • Industry research and analyst notes point to AI buildouts straining NAND supply and lifting prices—recent estimates show 60% to 70% jumps—which is boosting margins now even as investors debate how long high pricing and hyperscaler spending can last.