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SanDisk Jumps 12% on AI-Driven Memory Shortage After Big Earnings Beat

Analysts forecast steep memory price increases, reinforcing the company's bullish guidance.

Overview

  • Shares climbed 11.6% Monday to $588.73, bringing the year-to-date gain to 148% and the 12‑month rise to about 921%.
  • Q2 2026 revenue was $3.0 billion with EPS of $6.20, beating estimates as datacenter sales rose 64% quarter over quarter to $440 million and operating cash flow reached $1.0 billion.
  • For Q3 2026, the company guided to $4.40–$4.80 billion in revenue and EPS of $12–$14.
  • Sell-side research points to sharp price inflation, with BNP Paribas estimating Q1 DRAM ASPs up ~90% and NAND up ~55%, while Nomura projects data‑center storage chip prices could double and supply tightness may persist through 2028.
  • To secure supply, SanDisk extended its Kioxia manufacturing partnership with a $1.17 billion commitment for additional services from 2026 to 2029.