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SanDisk Authorizes $14 Billion Buyback After Nearly $9 Billion Quarter

It signals that datacenter AI demand has become the main driver of SanDisk's growth.

Overview

  • SanDisk reported fiscal fourth-quarter results on Friday, generating nearly $9 billion in revenue, a 372% year-over-year increase, and the company authorized a $14 billion stock repurchase that pushed the share price up about 7%.
  • The datacenter business grew roughly 437% year over year and now accounts for about one-quarter of sales, driven by strong demand for high-performance NAND used in AI server storage.
  • CEO David Goeckeler sold about $51.7 million of stock on September 14 and CFO Luis Visoso sold about $1.57 million on September 15 under pre-set Rule 10b5-1 plans that companies use for scheduled insider trades.
  • Broader market forces helped lift sentiment: Nvidia's forecast of much larger chip sales in 2027 reinforced demand expectations for AI memory, and a post-Fed retreat in Treasury yields eased pressure on tech stocks.
  • The buyback has renewed debate over valuation and capital allocation as reporting shows very large year-to-date gains for SanDisk (reports vary between roughly 548% and 580%), and Wall Street consensus remains tilted toward Buy with an average price target around $2,124.