Market Reaction: Sandisk's AI momentum continues, but forecast leaves Street wanting more

Sandisk posted record fiscal fourth-quarter revenue of $8.97 billion, driven by robust AI-led demand for data storage solutions. The company also reported adjusted earnings of $39.25 per share, comfortably surpassing Wall Street expectations as enterprise storage remained a major growth engine. (Sources: The Wall Street Journal, MarketWatch)

The company's data center business delivered another standout performance, with revenue more than doubling from a year earlier. Rising demand for high-capacity storage used in AI infrastructure, along with stronger NAND memory pricing and tight industry supply, helped lift profitability.

For the current quarter, Sandisk projected revenue of $10.3 billion to $10.8 billion and adjusted earnings of $44 to $46 per share. While the outlook exceeded consensus estimates, it did not significantly surpass investors' elevated expectations following the stock's strong AI-driven rally.

Despite delivering better-than-expected quarterly results, Sandisk shares fell about 5% in after-hours trading. Investors appeared disappointed that the company's forward guidance was not strong enough to justify the stock's rich valuation and high market expectations.

Sandisk remains optimistic about the long-term outlook, expecting continued investment in AI infrastructure to drive demand for enterprise storage. Ongoing supply discipline in the memory market and growing adoption of AI technologies are expected to provide further support for the company's growth in the coming quarters.