SanDisk Corporation (NASDAQ: SNDK) saw its shares jump sharply this week after reporting outstanding fiscal second-quarter 2026 results and issuing a remarkably strong outlook, driven by robust demand for memory storage from artificial intelligence (AI) data centers and technology infrastructure.
The company reported second-quarter revenue of $3.03 billion, a 31 % increase sequentially and 61 % higher than a year ago, with adjusted earnings per share of $6.20 — significantly above Wall Street expectations. SanDisk also delivered guidance for fiscal third-quarter revenue in the $4.4 billion to $4.8 billion range and adjusted EPS of $12–$14, far exceeding analyst forecasts.
AI Storage Demand Drives Growth
Investors and analysts attribute SanDisk’s outstanding performance to the explosive demand for storage solutions in AI and data center applications. As generative AI and large-scale machine learning models consume massive quantities of data, enterprise SSDs and NAND flash memory — core products in SanDisk’s portfolio — have become critical components for storage infrastructure.
In the second quarter, SanDisk’s data center storage revenue surged 64 % sequentially, highlighting the company’s ability to capitalize on this trend. CEO David Goeckeler noted that strong product positioning and a favorable mix of enterprise SSD deployments helped boost both margins and overall profitability.
Stock Performance and Analyst Sentiment
SanDisk’s stock has been one of the best-performing names on the S&P 500 in recent months, with shares gaining more than 160 % in January alone and continuing to rally after the earnings news. On January 30, 2026, the stock climbed sharply as investors reacted to the results and bullish outlook.
Market analysts from firms including Morgan Stanley and Mizuho have raised price targets on SanDisk shares, citing persistent supply constraints in the flash memory market and long-term growth prospects tied to AI-driven demand. Some forecasts have even pushed targets above the $600 mark, underscoring strong confidence in the company’s future performance.
Supply Constraints Add Momentum
A tightening of global memory chip supplies — especially in advanced NAND flash and solid-state storage — has added to SanDisk’s pricing power and helped expand margins. Supply agreements, such as the extended partnership with Japan’s Kioxia, aim to secure production capacity through 2034, ensuring SanDisk can fulfill demand as the AI storage market continues to grow.
What This Means for Investors
For investors, SanDisk’s blockbuster earnings results and strong forward guidance suggest the company is well-positioned to benefit from the next phase of AI infrastructure build-outs. Storage demand — particularly for AI workloads — is expected to remain elevated for several years, supporting revenue growth and potentially sustaining high valuation multiples.
However, as with any high-growth tech play, market watchers caution that the pace of demand, pricing dynamics, and broader economic conditions will continue to influence both earnings trajectories and stock performance.
