Shares surged 8% to $1,391 as investors piled in ahead of SanDisk's August 5 fiscal Q4 report — and the bet paid off. Revenue came in at $8.97 billion, up 372% year-over-year, surpassing estimates.
Adjusted earnings hit $39.25 per share, beating projections by 14%. The stock had already climbed roughly 25% over five trading days leading into the report, pricing in a beat that materialized — and then some.
The AI Storage Boom Is Rewriting SanDisk's Business Model
The artificial intelligence market's explosive growth forced data centers to upgrade servers with faster solid-state drives, triggering a global NAND chip shortage that drove up SanDisk's prices, boosting revenue and margins.
Gross margins expanded to 84.6% — staggering for a business historically known for thin profits. Two-thirds of sequential revenue growth came from higher pricing, not volume , meaning the company is earning more per chip rather than just selling more of them.
Multi-Year Contracts Are the Real Story
Since announcing five long-term customer agreements during its April earnings call, SanDisk signed five additional deals, including three with new customers. These lock in predictable revenue streams and insulate the company from the boom-bust pricing swings that have plagued memory makers for decades. The Stargate enterprise SSD ramp positions SanDisk for sustained pricing power into fiscal 2027.
A $14 Billion Buyback Signals Confidence — and Cash
The company authorized an additional $14 billion share repurchase program , a massive commitment for a company with a roughly $73 billion market cap. That tells shareholders management believes the stock is undervalued and that the cash generation powering this cycle is durable, not fleeting.
The Stock Is Still Down 40% From Its Peak — And the Bar Keeps Rising
After hitting a 52-week intraday high of $2,354 on June 22, the stock had retreated more than 30%.
SanDisk guided Q1 2027 revenue toward a $10.55 billion midpoint , suggesting management sees no slowdown. But the stock fell in after-hours trading despite the beat , a sign that at these levels, even strong results may not be enough. Investors now face a classic question: is SanDisk's transformation into a high-margin AI infrastructure supplier permanent, or is this the peak of a cyclical sugar rush?