Shares of Sandisk (SNDK) have surged 429% in 2026, driven by unprecedented demand for NAND flash storage chips from AI data centers and edge devices. The stock rose 8% following the release of its fiscal Q3 results, which showcased a revenue increase of 3.5 times year-over-year to $5.95 billion, significantly surpassing Wall Street’s expectations. Adjusted earnings per share reached $23.41, a remarkable turnaround from a loss in the previous year, highlighting the robust growth potential in the AI-driven market.
The implications for financial markets are substantial. Sandisk’s edge devices segment, which accounts for 62% of revenue, is benefiting from a shift toward premium smartphones and PCs that require higher storage capacities to support local AI processing. Additionally, long-term supply agreements worth $42 billion with data center customers underscore a strong revenue pipeline, while a projected 234% increase in NAND flash prices due to supply shortages signals ongoing pricing power.
Investors should take note of Sandisk’s guidance for $8 billion in revenue and $31 in earnings per share for the current quarter, far exceeding consensus estimates. If the company meets these expectations, analysts suggest its stock could reach nearly $4,000, presenting a compelling opportunity for growth in the AI storage sector.
Source: fool.com