Aug 5 (Reuters) - Sandisk forecast quarterly revenue above estimates on Wednesday, banking on rising demand for its memory chips used in AI data centers.
Shares of the Milpitas, California-based company fell more than 3% in extended trading, after rising more than five-fold this year alongside a broader rally in memory and storage stocks fueled by higher chip prices and optimism over AI-driven demand.
Here are some more details:
• The company forecast first-quarter revenue between $10.30 billion and
$10.80 billion, the midpoint of which is above analysts' average estimate of $10.47 billion, according to data compiled by LSEG.
• Quarterly adjusted profit is expected to be between $44 and $46 per share, above estimates of $43.12.
• Generative AI's rapid growth has been boosting demand for Sandisk's enterprise solid-state drives and flash memory chips, as data centers require more storage and computing capacity.
• The company's fourth-quarter data-center revenue more than doubled from the third quarter to $2.98 billion, capping a strong year for the company since separating from Western Digital in early 2025.
• Sandisk reported fourth-quarter revenue of $8.97 billion, beating estimates of $8.39 billion. Adjusted profit came in at $39.25 per share, exceeding estimates of $34.45.
• The company said it had signed five additional agreements under its new business model since April, including three with new customers and two expansions of existing deals.
• Sandisk's board approved an additional $14 billion share repurchase program, bringing its total remaining buyback authorization to $15.5 billion.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Shreya Biswas)
