The company’s shares climbed as much as 14.7% to $616.50, building on a roughly 160% surge in January that has made SanDisk one of the top performers on the S&P 500 this year.
SanDisk forecast fiscal third-quarter revenue between $4.4 billion and $4.8 billion, and adjusted earnings per share in the range of $12 to $14. Both midpoints are far above analysts’ estimates of $2.77 billion in revenue and $4.37 in EPS, according to LSEG data.
Morgan Stanley analysts said the results indicate earnings are likely to remain above trend for the foreseeable future, adding that the strength could continue “as long as the AI trajectory remains this robust.”
The broader memory chip sector has also been buoyed by AI demand, with competitors such as Western Digital, Seagate Technology and Micron Technology posting strong gains recently. Western Digital also forecast third-quarter revenue above expectations, though its shares fell 5.5% on the day.
Supply constraints are expected to persist, as AI and consumer electronics companies compete for limited memory supplies. This scarcity is projected to support a multi-year backlog for manufacturers.
Morningstar analysts said supply pressures are likely to continue through at least 2028, a scenario that could generate significant growth for SanDisk.
In the second quarter, SanDisk reported sales of $3.03 billion and adjusted EPS of $6.20, both beating estimates.
SanDisk also announced it has extended a key flash memory supply agreement with Kioxia Corp. The joint venture in Japan will now run through 2034, up from its previous end date in 2029, ensuring a steady supply of chips amid tight market conditions.
Following the results, at least five brokerages raised their price targets, with Bernstein setting one of the highest at $1,000 per share.