Core Insights - Sandisk has become a leading player in the NAND flash memory and SSD markets following its spin-off from Western Digital in February 2025, with its stock price increasing from $50 to $395, making it the top performer in the S&P 500 over the past year due to the shift in the "AI Data Cycle" [1] Business Segments - Sandisk has restructured its operations into three main segments: Datacenter (28% of Revenue), Edge (61% of Revenue), and Consumer (11% of Revenue) [3][4][5] - The Datacenter segment focuses on high-capacity, power-efficient SSDs for hyperscalers like Amazon and Microsoft, featuring products such as Stargate controller-based drives and 256TB UltraQLC SSDs for AI inference [3] - The Edge segment, which serves the PC and smartphone markets, has transitioned to the Sandisk Optimus™ brand, with the Optimus GX Pro as the flagship product for AI PCs and professional workstations [4] - The Consumer segment remains a strong revenue source through retail memory cards and portable SSDs, recently achieving over 900,000 units of co-branded Nintendo Switch 2 microSD Express cards [5] Financial Performance - Sandisk reported a strong Q1 FY'26 performance with revenue of $2.38 billion, exceeding expectations, and a gross margin increase to 29.8% [6] - Guidance for Q2 FY'26 is optimistic, projecting EPS of $3.00–$3.40 and revenue of $2.55–$2.65 billion, alongside a gross margin expansion to 41–43% [7] - Data center revenue increased by 26% quarter over quarter, driven by demand from PC refresh cycles and AI smartphone storage needs [8] Analyst Estimates - Analyst estimates for Sandisk's EPS have significantly increased, with current quarter estimates rising from $1.77 to $3.25, an 83% increase, and next quarter estimates from $1.45 to $3.63, a 120% increase [9] - For the current year, EPS estimates have jumped from $6.31 to $12.59, a 99% increase, and for the next year, estimates have risen from $10.39 to $24.04, a 130% increase [11] Market Demand and Supply Dynamics - The demand for NAND memory is expected to intensify, particularly with NVIDIA's Vera Rubin server platform requiring significant additional SSD NAND, projected to reach 34.6 million TB in 2026 and 115.2 million TB in 2027 [12][13] - The global NAND supply shortage is anticipated to worsen, creating further demand for Sandisk's products [13] Revenue Trends and Financial Outlook - Sandisk's revenue for Q1 FY26 was $2.31 billion, a 23% year-over-year increase, with guidance for Q2 FY26 suggesting further growth to $2.6 billion (+38% YoY) and a full-year outlook of $10.45 billion (+42%) [14] - Non-GAAP gross margins have improved from the low 20s in early 2024 to 29.9% in Q1 FY26, with management targeting 41%–43% for early 2026 [15] Investment Conclusion - Despite valuation concerns due to a 680% stock price increase since August, the structural demand for high-bandwidth flash in AI infrastructure supports a premium valuation, maintaining Sandisk as a "Strong Buy" [16]

Group 1 - Sandisk Corp. (NASDAQ:SNDK) reached an all-time high of $205.64 during intra-day trading, closing up 16.42% at $204.36 ahead of its earnings announcement [1][2] - The company is set to release its Q3 earnings results after market close on November 6, 2023, followed by a conference call to discuss the results [2] - Sandisk launched a new product collection themed around the FIFA World Cup 2026, including USB-C flash drives and portable SSDs, in addition to a partnership with Crayola for a themed USB-C flash drive [3][4] Group 2 - The Crayola-themed USB-C flash drive will feature four vibrant colors and storage options ranging from 64 GB to 256 GB, exclusively available at Walmart in North America until January 2026 [4]

Financial Performance - Revenue for the fiscal third quarter 2025 was $1.7 billion[6], a decrease of 1% year-over-year[17] and down 10% quarter-over-quarter[17] - Non-GAAP gross margin was 22.7%[6], a decrease of 4.7 percentage points year-over-year[17] and down 9.8 percentage points quarter-over-quarter[17] - Non-GAAP EPS showed a loss of $0.30[6], compared to earnings of $0.57 in Q3 2024 and $1.23 in Q2 2025[17] - Adjusted free cash flow was $220 million[6], an increase of 153% year-over-year[17] and up 142% quarter-over-quarter[17] - Cash and cash equivalents totaled $1.5 billion[6] Segment Performance - Client revenue was $197 million, a decrease of 21% quarter-over-quarter[15] - Consumer revenue was $927 million, a decrease of 10% quarter-over-quarter[15] - Cloud revenue was $571 million, a decrease of 5% quarter-over-quarter[15] - Cloud bit allocation increased, representing 12% of total bits this quarter, up from 8% in the same quarter of the prior year[13] Future Outlook - The company forecasts demand to strengthen throughout the year[5] - Revenue guidance for the fiscal fourth quarter is $1.75 billion to $1.85 billion[21] - Non-GAAP gross margin guidance for the fiscal fourth quarter is 25.5% to 27.0%[21]