Core Insights - Sandisk (SNDK) reported strong second-quarter fiscal 2026 results, with non-GAAP earnings of $6.20 per share, exceeding the Zacks Consensus Estimate by 75.14% [1][7] - Revenues increased significantly by 61.2% year over year and 31.1% sequentially to $3.03 billion, surpassing the Zacks Consensus Estimate by 13.49% [2][7] Revenue Breakdown - Datacenter revenues surged 76% year over year and 63.6% sequentially to $440 million, benefiting from strong adoption among AI infrastructure builders and technology companies [3] - Edge revenues rose 63.2% year over year and 21% sequentially to $1.68 billion, exceeding the Zacks Consensus Estimate by 10.61% [4] - Consumer revenues increased by 51.7% year over year and 39.1% sequentially to $907 million, also beating the Zacks Consensus Estimate by 17.95% [4] Margin Analysis - Gross margin improved to 51.1%, up from 32.5% in the year-ago quarter and 29.9% in the previous quarter [5] - Operating margin expanded to 32%, compared to 9.5% reported in the year-ago quarter and 24.1% in the previous quarter [5] Financial Position - As of January 2, 2026, Sandisk had cash and cash equivalents of $1.54 billion against long-term debt of $583 million [6] - Adjusted free cash flow for the second quarter was $843 million, a significant increase from $91 million in the year-ago quarter [6] Future Guidance - For Q3 fiscal 2026, Sandisk anticipates revenues between $4.4 billion and $4.8 billion, with gross margin expected in the 65%-67% range [7][8] - Earnings are projected to be between $12 per share and $14 per share [8]

Core Viewpoint - Sandisk's stock has experienced a significant increase following impressive earnings, with analysts suggesting that the company may face a prolonged period of high demand for its storage products due to a substantial supply-demand imbalance [1] Group 1: Earnings Performance - Sandisk's quarterly revenue guidance exceeded expectations by nearly 60% at the midpoint [1] - The company's profit outlook surpassed estimates by 150% [1] Group 2: Market Reaction - Following the earnings report, Sandisk shares saw a substantial rise, indicating strong market confidence in the company's future performance [1] - Analysts have characterized the stock upgrade as "one of the most delayed upgrades in history," reflecting the unexpected strength of Sandisk's financial results [1] Group 3: Supply and Demand Dynamics - There is an anticipated widening gap between supply and demand for Sandisk's storage products, which could lead to the company being sold out for years [1]

业绩指引方面，SanDisk预计，2026财年第三财季营收将在44亿美元至48亿美元之间，GAAP毛利率预 计在64.9%至66.9%之间。SanDisk首席执行官David Goeckeler表示，展望未来，2026年之后的客户需求 远高于供应。在世界上一些最大和资本最雄厚的科技公司的推动下，预计数据中心将在2026年首次成为 NAND的最大市场。不过，公司仍坚持现有资本支出计划，拒绝盲目扩产。 周五，SanDisk(SNDK.US)盘前大涨逾22%，报661.50美元。财报显示，2026财年第二财季，SanDisk营 收为30.25亿美元，同比增长61%；GAAP口径下净利润为8.03亿美元，同比增长672%；GAAP口径下稀 释后每股收益为5.15美元，同比增长615%；GAAP口径下毛利率为50.9%，相比去年同期提升18.6%，全 面超越市场预期。 ...

Core Viewpoint - SanDisk's stock surged over 22% to $661.50 following a strong earnings report, indicating robust financial performance and positive market outlook [1] Financial Performance - For Q2 of fiscal year 2026, SanDisk reported revenue of $3.025 billion, a year-over-year increase of 61% [1] - The GAAP net income reached $803 million, reflecting a significant year-over-year growth of 672% [1] - GAAP diluted earnings per share (EPS) stood at $5.15, up 615% compared to the same period last year [1] - The GAAP gross margin was 50.9%, an increase of 18.6% from the previous year [1] Future Guidance - SanDisk projects Q3 revenue for fiscal year 2026 to be between $4.4 billion and $4.8 billion [1] - The expected GAAP gross margin for the same period is forecasted to be between 64.9% and 66.9% [1] Market Outlook - CEO David Goeckeler highlighted that customer demand post-2026 is expected to significantly exceed supply [1] - Data centers are anticipated to become the largest market for NAND by 2026, driven by major technology companies [1] - The company plans to maintain its current capital expenditure strategy and will not engage in reckless expansion [1]

Company Overview - Sandisk Corporation (NASDAQ:SNDK) has seen its shares rise by triple-digit percentages since early 2025, indicating strong market performance [2] - Analysts have recently increased their price targets for Sandisk, with Mizuho raising it to $600 from $410 while maintaining an Outperform rating [2] - Benchmark also raised its price target for Sandisk to $450 from $260, keeping a Buy rating, citing capacity issues in the NAND market as a driving factor [2] Industry Insights - The NAND and DRAM product sectors are experiencing pricing power, which is beneficial for Sandisk [2] - A significant factor noted by analysts is the expected shortage of NAND wafer capacity in 2026 and 2027, potentially leading to a 330% price increase in 2026 [2] - Jim Cramer highlighted that Sandisk's recent performance issues are due to an inability to meet demand rather than a lack of demand, emphasizing the importance of capacity in the market [3]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - TechCreate Group Ltd. (TCGL) is up 99% at $205.71 - VivoSim Labs, Inc. (VIVS) is up 74% at $2.96 - La Rosa Holdings Corp. (LRHC) is up 55% at $4.66 - Sandisk Corporation (SNDK) is up 23% at $668.13 - Springview Holdings Ltd (SPHL) is up 19% at $4.76 - BUUU Group Limited (BUUU) is up 16% at $10.86 - Deckers Outdoor Corporation (DECK) is up 11% at $111.64 - Lumentum Holdings Inc. (LITE) is up 10% at $419.58 - Chanson International Holding (CHSN) is up 10% at $2.15 - Century Therapeutics, Inc. (IPSC) is up 9% at $2.20 [3] Premarket Losers - Kaixin Holdings (KXIN) is down 43% at $5.70 - Brand Engagement Network, Inc. (BNAI) is down 32% at $35.56 - PennyMac Financial Services, Inc. (PFSI) is down 21% at $117.50 - Schneider National, Inc. (SNDR) is down 19% at $24.05 - Moolec Science SA (MLEC) is down 19% at $5.23 - Nuwellis, Inc. (NUWE) is down 18% at $3.43 - Digital Currency X Technology Inc. (DCX) is down 16% at $3.44 - Serina Therapeutics, Inc. (SER) is down 15% at $3.03 - Namib Minerals (NAMM) is down 11% at $5.00 - ZeroStack Corp. (ZSTK) is down 6% at $11.00 [4]

Market Movements - US stock index futures are all down, with Dow futures down 0.32%, S&P 500 futures down 0.37%, and Nasdaq futures down 0.49% [1] - European indices show positive movement, with Germany's DAX up 1.04%, UK's FTSE 100 up 0.45%, France's CAC40 up 0.76%, and the Euro Stoxx 50 up 1.04% [2][3] - WTI crude oil is down 0.61% at $65.02 per barrel, while Brent crude oil is down 0.73% at $69.08 per barrel [3][4] Market News - Trump's nomination of Kevin Warsh for the Federal Reserve chair may face hurdles due to ongoing investigations, with some Republican senators indicating they will block nominations until legal issues are resolved [5] - The financial market perceives Warsh as a more hawkish candidate compared to current chair Powell, potentially leading to tighter monetary policies [5] - Gold and silver prices have seen significant declines, with gold dropping over 5% to $5,099 per ounce and silver down over 12% to $101.4 per ounce, raising concerns about the sustainability of recent price increases [6] - The temporary agreement between Trump and Senate Democrats aims to prevent a government shutdown, although further negotiations are ongoing [6] Investment Strategies - Bank of America indicates that global stock markets are flashing sell signals, with 89% of MSCI stock index prices above their 50-day and 200-day moving averages, surpassing the 88% threshold considered a sell signal [7] - Jeff Gundlach, known as the "new bond king," advises avoiding the US market due to high inflation and a weakening dollar, recommending a 30%-40% allocation to non-US stocks, particularly emerging markets [8] Company News - Apple reported record Q1 earnings of $143.8 billion, a 16% year-over-year increase, driven by a 23% increase in iPhone revenue to $85.3 billion, with significant growth in the Greater China region [9] - Apple CEO Tim Cook announced a partnership with Google to develop a more personalized Siri, while also warning of supply constraints due to 3nm chip production limitations [10] - Sandisk's Q2 revenue is projected to grow 61.2% to $3.03 billion, exceeding market expectations, with a strong performance in data center and consumer segments [11] - Western Digital reported a 25% increase in revenue to $3.02 billion, with net profit surging 296%, driven by AI infrastructure demand [12] - KLA Corporation's Q2 revenue grew 7.2% to $3.3 billion, benefiting from AI infrastructure expansion, but concerns about valuation risks have emerged [13] - Visa's Q1 adjusted earnings were $3.17 per share, a 15% increase, with total payment volume reaching $3.87 trillion, exceeding expectations [14] - ExxonMobil's Q4 adjusted net profit was $1.71 per share, driven by increased oil production and refining margins, while Chevron's Q4 adjusted earnings were $1.52 per share, with plans for production growth [15][16] - Coterra Energy and Devon Energy are reportedly in talks for a potential merger, which could be one of the largest oil and gas deals in recent years [17]

Core Viewpoint - SanDisk (NASDAQ:SNDK) reported Q2 FY2026 earnings with revenue of $3.025 billion, a year-over-year increase of 61% and a quarter-over-quarter increase of 31%, significantly exceeding previous guidance. The gross margin was 51.1%, up 18.6 percentage points year-over-year and 21.2 percentage points quarter-over-quarter, driven by rising product prices across all segments and strong demand [2][11][19]. Group 1: Financial Performance - Q2 FY2026 revenue reached $3.025 billion, surpassing the guidance of $2.55 to $2.65 billion, primarily due to price increases across all segments, with a unit shipment increase of 22% year-over-year [2][18]. - Non-GAAP EPS was $6.20, significantly above the guidance of $3.00 to $3.40, driven by higher revenue and lower costs [19][11]. - Non-GAAP gross margin was 51.1%, exceeding the guidance of 40.8% to 42.8%, with a projected margin of 65% to 67% for Q3 FY2026 [19][21]. Group 2: Market Segments - Data Center revenue was $440 million, up 74% year-over-year and 64% quarter-over-quarter, with strong demand driven by AI infrastructure expansion [3][13]. - Edge Computing revenue reached $1.678 billion, a 63% year-over-year increase and 21% quarter-over-quarter, influenced by the PC and mobile device upgrade cycles [3][14]. - Consumer revenue was $907 million, reflecting a 61% year-over-year increase and 31% quarter-over-quarter, supported by a shift towards high-end products [3][15]. Group 3: Future Guidance - Q3 FY2026 revenue is expected to be between $4.4 billion and $4.8 billion, with a midpoint indicating a 171% year-over-year increase and a 52% quarter-over-quarter increase, amid worsening supply shortages [4][21]. - The company raised the 2026 data center market EB-level data growth rate forecast to over 60%, up from the previous estimate of 40% [4][21]. Group 4: Strategic Partnerships - SanDisk extended its partnership with Kioxia, ensuring stable product supply through a $1.165 billion payment for manufacturing services, with the partnership lasting until December 31, 2034 [5][20]. - The company is in discussions with NVIDIA regarding potential additional data demand from KV caching, estimating an extra 75-100 EB of data demand by 2027 [5][26]. Group 5: Operational Strategy - The company is focusing on long-term agreements with strategic customers to ensure supply stability and predictable demand, moving away from short-term transactional models [11][17]. - The company plans to maintain capital expenditure to support mid-high teens bit growth while ensuring profitability to fund R&D and capital investments [18][35].

Investment Rating - The report indicates a strong investment outlook for the industry, with significant revenue and gross margin growth expected in the upcoming quarters [1][3]. Core Insights - The company reported FY26Q2 revenue of $3.025 billion, a year-over-year increase of 61% and a quarter-over-quarter increase of 31%, significantly exceeding previous guidance [1][28]. - Gross margin for FY26Q2 was 51.1%, up 18.6 percentage points year-over-year and 21.2 percentage points quarter-over-quarter, also surpassing prior guidance [1][29]. - The company anticipates that demand will continue to significantly exceed supply in all end markets beyond 2026, driven by rising product prices and robust demand across all segments [2][25]. Summary by Sections Financial Performance - FY26Q2 revenue was $3.025 billion, exceeding guidance of $2.55 to $2.65 billion, primarily due to price increases across all segments [1][28]. - Non-GAAP EPS for FY26Q2 was $6.20, far exceeding the previous guidance of $3.00 to $3.40 [1][30]. - The company expects FY26Q3 revenue to be in the range of $4.4 to $4.8 billion, with a gross margin of 65% to 67% [3][32]. Market Segments - Data Center: Revenue reached $440 million, up 74% year-over-year and 64% quarter-over-quarter, with strong demand expected to continue [2][22]. - Edge Computing: Revenue was $1.678 billion, a 63% year-over-year increase and 21% quarter-over-quarter increase, driven by the AI adoption and device upgrades [2][23]. - Consumer Market: Revenue was $907 million, up 61% year-over-year and 31% quarter-over-quarter, with a focus on high-end products [2][24]. Strategic Developments - The company extended its partnership with Kioxia until December 31, 2034, ensuring stable product supply and a total payment of $1.165 billion for manufacturing services [4][31]. - The company is in discussions with NVIDIA regarding additional data demand, estimating an extra 75 to 100 EB of data demand by 2027, which could double the following year [4][41]. Industry Dynamics - The report highlights a structural transformation in the NAND market driven by AI, with data centers expected to become the largest end market for NAND products [21][35]. - The company is focusing on long-term agreements with customers to ensure supply stability and predictable returns, moving away from short-term transactional models [21][38].

Market Overview - U.S. stock markets are expected to open lower due to a tech-led sell-off and ongoing corporate earnings digestion [1] - Nasdaq 100 futures declined 1.06%, S&P 500 futures fell 0.86%, and Dow futures slipped 0.81% [2] - Precious metals, including gold, saw significant declines, with gold's price dropping 2.8% to $5,205 per ounce [2] - Oil prices have also retreated amid easing geopolitical tensions in the Middle East [2] Major Market Indexes - On January 29, 2026, the S&P 500 closed down 0.1% at 6,969.01 after nearing its all-time high [3] - The Dow Jones Industrial Average gained 55.96 points, or 0.1%, finishing at 49,071.56 [3] - The Nasdaq Composite fell 0.7% (172.33 points) to 23,685.12, indicating a shift towards defensive sectors [3] Economic Data and Events - Key economic data releases today include the January jobs report, focusing on payroll growth, unemployment rates, and average hourly earnings [4] - Upcoming data includes the January ISM manufacturing index, December job openings, and housing starts [4] - Japan's Tokyo CPI is also being monitored as a leading indicator for national inflation trends [4] Federal Reserve Appointment - Anticipation surrounds President Trump's nomination of Kevin Warsh as the next Federal Reserve chair, which could lead to rising U.S. Treasury yields [5] - Warsh is known for his inflation hawk stance and criticism of the Fed, potentially signaling a shift in monetary policy [5] Corporate Earnings and Stock Movements - Major companies reporting earnings include Exxon Mobil, Chevron, American Express, Verizon, and Regeneron Pharmaceuticals [6] - Microsoft experienced a 10% drop despite strong quarterly results, as investors focused on future growth and investments [7] - Tesla's stock fell 3.5% despite exceeding profit expectations, with CEO Elon Musk redirecting focus to future ventures [11] - Sandisk Corporation surged over 19% in premarket trading after reporting exceptional earnings driven by AI demand [11] - Apple reported a 16% year-over-year revenue increase but saw flat premarket trading [11] - Southwest Airlines stock rose 18.7% despite missing profit forecasts, buoyed by an optimistic earnings outlook [11] - IBM's stock climbed 5.1% after surpassing profit and revenue expectations [11] - ServiceNow dropped 9.9% despite reporting stronger-than-expected profits [11] - Texas Instruments saw a market surge of over 7% following a favorable capital return strategy [11] - Other notable premarket movers include Deckers Outdoor Corporation up 12.71% and ResMed Inc. up 3.95% [11]