Sandisk sales top estimates as AI demand fuels data-center growth

Sandisk (NASDAQ:SNDK) reported second-quarter revenue that exceeded its own forecasts, bolstered by a surge in demand for artificial intelligence infrastructure.

The Milpitas, California-based company also provided an upbeat outlook for the current period, signaling continued momentum in the high-stakes race to supply AI-capable hardware.

The results highlight a significant shift in the storage provider’s business mix.

While traditionally known for consumer memory products, Sandisk’s datacenter division saw revenue jump 64% from the previous quarter.

The company attributed the growth to "strong adoption" by technology firms and semi-custom customers deploying AI at scale.

For the second quarter, revenue reached $3.03 billion, a 31% sequential increase.

Net income on a GAAP basis was $803 million, or $5.15 per diluted share.

Excluding certain items, profit was $6.20 a share, well above the company's prior guidance range.

Looking ahead, Sandisk expects the AI-driven tailwinds to intensify.

Third-quarter revenue is projected to be between $4.40 billion and $4.80 billion.

Non-GAAP diluted earnings are forecast to reach $12 to $14 per share, nearly doubling the bottom-line performance of the second quarter.