Particle.news
Download on the App Store

SanDisk Shares Jump on Blowout Quarter, Lofty Outlook and 2034 Kioxia Supply Pact

Tight NAND supply tied to AI infrastructure is boosting prices and margins, prompting a wave of price‑target hikes.

Overview

  • Fiscal Q2 revenue reached $3.03 billion with adjusted EPS of $6.20, crushing estimates as profit rose 672% year over year and data‑center sales grew 76%.
  • Q3 guidance calls for $4.4 billion to $4.8 billion in revenue and $12 to $14 in adjusted EPS, with expected gross margin of 65% to 67%, well above consensus.
  • SanDisk extended its flash‑chip supply agreement with Kioxia through the end of 2034, locking in long‑term capacity from their Japan joint venture.
  • Shares climbed roughly 14% to 22% in Friday trading after the report, as analysts raised targets, including Bank of America to $850 and Bernstein to $1,000.
  • Executives said demand exceeds available supply and customers favor availability over price, with constraints expected to persist through 2026.