Sandisk‘s stock popped 14% after the company crushed Wall Street’s fiscal second-quarter estimates, as the artificial intelligence boom sent demand for its chips skyrocketing.
The flash storage memory company reported earnings of $6.20 per share, excluding items, blowing past the $3.62 per share expected by analysts surveyed by FactSet. Revenue totaled $3.03 billion, topping a forecast of $2.69 billion.
Sandisk’s third-quarter forecast also outpaced expectations for analysts.
Sandisk guided for between $4.4 billion and $4.8 billion in revenue for the quarter. That blew away the $2.93 billion expected by FactSet.
Memory companies like Sandisk are seeing a boost from skyrocketing memory need, as businesses race to funnel more storage supply into the power-hungry datacenter buildout that’s fueling the AI revolution.
The company’s datacenter business grew 64%, sequentially.
This backdrop has also created a supply and demand imbalance that’s allowed memory companies to hike prices and maintain strong margins.
Sandisk said it expects third-quarter gross margins to range between 65% and 67%, far ahead of the 49.3% expected by analysts polled by StreetAccount.
