Sandisk's earnings forecasts impressed the market. Its shares have gained 1400% in almost a year

The new revenue forecast for data storage solutions developer Sandisk was almost 60% higher than market expectations, and the profit forecast was 150% higher, MarketWatch writes. This illustrates why one of the most popular stocks in the S&P 500 continues to gain momentum, the publication points out. At the premarket on Jan. 30, Sandisk's stock price soared another more than 20%; it's up 1,400% since last February.

Sandisk said Jan. 29 that it expects revenue for its fiscal third quarter to be in the range of $4.4 billion to $4.8 billion, nearly 60% higher than the $2.9 billion consensus previously reported by FactSet, MarketWatch reported. The company also forecast adjusted earnings per share in the third quarter in the range of $12 to $14, more than 150% above analysts' expectations; they had pegged the figure at $5.11 per share.

On Thursday, January 29, Sandisk also reported second-quarter fiscal 2026 revenue of $3 billion, up 61% from a year ago and above analysts' expectations of $2.7 billion, MarketWatch writes. Adjusted earnings came in at $6.2 per share, up 404% from a year ago and well above consensus of $3.62, the publication points out.

Sandisk has been a key beneficiary of the rapid growth in demand for memory chips and storage systems amid advances in artificial intelligence. "This quarter's results underscore our ability to flexibly capitalize <...> on the increasing momentum of market demand - at a time when the key role our products play in enabling AI is increasingly recognized," Sandisk CEO David Heckler said in a statement following the reporting period.

Sandisk also reported a 64% quarter-over-quarter increase in data center revenue, to $440 million, compared to the previous quarter. Sandisk attributed this to strong demand from companies building data centers for AI, customers' individual storage needs, and the scaling of AI use by large technology companies.

Sandisk shares have gained nearly 1,400% since separating from Western Digital, one of the storage market leaders, in February 2025. At the premarket on January 30, the stock added another 23.5%.

In January, Bernstein analyst Mark Newman named Sandisk as one of his top ideas in the storage solutions sector for this year. According to him, a severe shortage of NAND memory (the backbone of all SSDs, flash drives and memory cards) is allowing manufacturers to raise prices, which will support the growth of Sandisk and other companies in the market in the near term.

According to MarketWatch, of the 25 analysts that monitor the company's stock, 16 recommend buying it, eight recommend holding it and only one recommends selling it.

This article was AI-translated and verified by a human editor