SanDisk shares rose 5.16% on Thursday, February 12, amid a broader rally in the memory chip sector. The surge followed guidance from competitor Kioxia signaling a persistent global NAND memory shortage. Kioxia reported that customers are now booking supply contracts for 2027-2028. This shift marks a significant departure from the industry's typical one-year advance booking cycle.
Explosive growth in artificial intelligence drives the structural demand for SanDisk’s high-performance storage in data centers. The company recently reported a 61% year-over-year revenue increase. Adjusted earnings per share surged fivefold in the latest quarter. Gross margins expanded to 50.9% from 32.3% a year ago. This margin growth reflects strong pricing power resulting from the global supply crunch.