As artificial intelligence drives massive data creation, Sandisk’s NAND flash memory business is entering a powerful new growth phase.
Memory chip manufacturer Sandisk reported a significant jump in revenue and profitability, while projecting continued strong performance in the coming quarter. To manage potential market volatility, the company has secured long-term supply agreements valued at approximately $42 billion and announced a $6 billion share repurchase program.
The rapid expansion of artificial intelligence applications has played a key role in driving Sandisk’s growth. Demand for NAND flash memory — the company’s primary product — has increased sharply as AI platforms handle massive volumes of data, ranging from complex documentation to large software code repositories. Despite this momentum, NAND memory, similar to DRAM, has historically experienced sharp pricing swings due to shifts in supply and demand.
In the third quarter, Sandisk’s revenue more than tripled year-on-year to $5.95 billion, surpassing analysts’ expectations of $4.70 billion, according to LSEG estimates. Adjusted earnings reached $23.41 per share, significantly higher than the projected $14.50 per share and a major recovery from the loss of 30 cents per share reported in the same period last year, when AI-driven data-center demand was still emerging.
The company’s stock has climbed over 360% so far this year. Shares gained around 3% during regular trading on Thursday and initially moved higher after the earnings announcement, but later reversed direction to close roughly 6% lower in after-hours trading.
