SanDisk forecasts upbeat quarterly revenue on AI-driven demand

SanDisk anticipates stronger-than-expected revenue for the first quarter, projecting between $10.30 billion and $10.80 billion. This optimistic forecast is largely attributed to the surging demand for its memory chips, crucial components for artificial intelligence data centers. The company's shares, which have already seen a more than five-fold increase this year, experienced a slight dip in extended trading following the announcement. The rapid growth of generative AI has significantly boosted demand for SanDisk's enterprise solid-state drives and flash memory chips, as data centers require enhanced storage and computing capabilities. This trend is reflected in the company's fourth-quarter performance, where data center revenue more than doubled from the previous quarter, reaching $2.98 billion. This marks a strong year for SanDisk, especially since its separation from Western Digital in early 2025. In the fourth quarter, SanDisk reported revenue of $8.97 billion, surpassing analysts' estimates of $8.39 billion, with adjusted profit at $39.25 per share, exceeding expectations of $34.45. Furthermore, the company has secured five new business agreements since April, including deals with new clients and expansions with existing ones. SanDisk's board has also approved an additional $14 billion share repurchase program, bringing its total remaining authorization for buybacks to $15.5 billion.