Sandisk forecasts upbeat quarterly revenue on AI-driven demand

Aug 5 (Reuters) - Sandisk forecast ‌quarterly revenue ​above ​estimates on Wednesday, banking on rising demand for its memory chips used in AI data ‌centers.

Shares of the Milpitas, California-based company fell more than ⁠3% in extended trading, after rising more than five-fold this year ‌alongside a broader rally ‌in memory and storage stocks fueled by higher chip prices and optimism over AI-driven demand.

Here are some more ​details:

• The company forecast first-quarter revenue between $10.30 billion and $10.80 billion, the midpoint of which is above analysts' average ⁠estimate of $10.47 billion, according to data compiled by LSEG.

• Quarterly adjusted profit is ​expected to be between $44 and $46 per share, above estimates of $43.12.

• Generative AI's rapid growth has ​been boosting demand for Sandisk's enterprise ‌solid-state drives and flash memory chips, as data centers require more storage and computing ⁠capacity.

• The company's fourth-quarter data-center revenue more than doubled from the third quarter to $2.98 billion, capping a strong year for the ⁠company since separating from Western Digital in early 2025.

• Sandisk reported ​fourth-quarter revenue of $8.97 billion, beating estimates of $8.39 billion. Adjusted profit came in at $39.25 per share, exceeding estimates of $34.45.

• The company said it ‌had signed five additional agreements under its new business model since April, including three with ‌new customers and two expansions of existing deals.

• Sandisk's ⁠board approved an additional $14 billion ‌share repurchase program, ​bringing its total remaining buyback authorization to $15.5 billion.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Shreya ‌Biswas)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Paycom raises annual forecast on AI-driven demand
• FIFA says leadership fully supports President Infantino
• Western Digital forecasts upbeat revenue but shares fall on lofty expectations