NEW YORK, January 30, 2026, 04:46 ET — Premarket
- Sandisk shares surged early after the company raised its profit outlook and announced new supply developments.
- The flash-memory maker cited rising AI-driven demand in data centers alongside tightening supply.
- Investors await to see if the rally sustains as regular U.S. trading kicks off.
Sandisk shares jumped 18.9% in premarket action Friday, hitting $641.18 by 4:22 a.m. ET. The flash-memory company boosted its profit forecast and renewed a crucial supply deal. The stock had closed Thursday at $539.30. (Investing)
Sandisk’s late-day forecast demands a quick rethink. The company expects fiscal third-quarter revenue between $4.40 billion and $4.80 billion, with adjusted earnings of $12 to $14 per share—both figures well above Wall Street’s estimates, per LSEG data. CEO David Goeckeler pointed to rising AI demand, noting customers are locking in capacity as data centers pivot to “inference,” where AI models answer questions and retrieve data. He summed it up bluntly: “Customers prefer supply over price.” (Reuters)
For the fiscal second quarter ending Jan. 2, Sandisk reported revenue up 61% year-over-year, hitting $3.03 billion. GAAP net income surged to $803 million, or $5.15 per share, while adjusted earnings came in at $6.20 per share. Datacenter revenue climbed 64% sequentially to $440 million, with gross margin widening to roughly 51%, according to a filing. Sandisk started trading as a standalone public company following its split from Western Digital on Feb. 21, 2025. (SEC)
Goeckeler noted in a separate statement that the quarter showed an improved product mix and quicker enterprise solid-state drive rollouts, alongside a sharper operating focus. He described a “structural reset” designed to match supply with what he termed “attractive, sustained demand.” (Sandisk)
Supply plays a crucial role, and Sandisk took steps to lock down more of it. Kioxia and Sandisk announced they’ve extended their joint venture agreements at Kioxia’s Yokkaichi plant through Dec. 31, 2034, while also synchronizing terms for the Kitakami plant for the same stretch. Sandisk will shell out $1.165 billion to Kioxia for manufacturing services and supply availability, paid in installments from 2026 through 2029, the companies said. (Business Wire)
During the earnings call, CFO Luis Visoso emphasized the company’s focus on debt reduction, investments, and building “prudent cash reserves” before considering any major moves on capital returns. Management also revealed they had inked one long-term, multiyear supply-and-pricing deal and were chasing additional agreements, banking on customers trading flexibility for more reliable access to bits. (The Motley Fool)
But the situation works both ways. NAND flash prices can shift rapidly, and if AI spending cools down or capacity ramps up faster industry-wide, margins could come under pressure just as the company anticipates a boost.
The stock’s jump leaves little wiggle room for messy details — like how fast supply deals turn into actual shipments or if customers will accept the stricter terms that come with long contracts in a heated market.
