Core Insights - Sandisk's stock surged due to rising memory prices and a shortage in the memory sector driven by the AI boom [1][2] - The company exceeded earnings estimates in its second-quarter report, with significant revenue and profit growth [6] Group 1: Stock Performance - Sandisk's shares rose 15.41% last month, benefiting from media reports on increasing memory prices [1] - The stock finished the year up 143%, gaining in nearly every session last month [2] Group 2: Market Drivers - Nvidia CEO Jensen Huang's comments on AI storage being an "unserved market" contributed to a significant stock increase [4] - TrendForce projected a 33%-38% rise in NAND flash contract prices for the first quarter [4] Group 3: Earnings Report - In Q2, Sandisk's revenue increased by 31% sequentially and 61% year-over-year to $3.03 billion, surpassing consensus estimates of $2.69 billion [6] - Adjusted earnings per share rose from $1.23 to $6.20, with gross margin increasing from 32.5% to 51.1% [6] Group 4: Future Outlook - For Q3, Sandisk forecasts revenue between $4.4 billion and $4.8 billion, with adjusted earnings per share expected to double to $12-$14 [7] - The current upswing in memory prices and profits suggests potential for continued growth in the coming quarters [7]
Why Sandisk Stock Skyrocketed 143% in January