In the rush to the exits on Sandisk (SNDK) after a slight current quarter guidance miss on Wednesday night, investors may be overlooking a blunt reality.
This company is executing well as it partakes in the AI boom driving demand for its memory chips. +175% This is how much Sandisk’s sales rose in its just-completed fiscal year, Yahoo Finance AlphaSpace data shows
Looked at another way, the backdrop is so strong for memory chips that Sandisk closed out its fiscal year with $20.2 billion in sales, up from $7.4 billion a year ago. What’s more, Sandisk saw an acceleration in its sales growth in its fiscal fourth quarter to a 372% year-over-year rate. Zoom out Sandisk reported blowout fiscal fourth quarter 2026 results, comfortably beating Wall Street estimates with non-GAAP earnings of $39.25 per share on $8.97 billion in revenue.
The record top-line performance was driven by explosive demand for AI memory infrastructure, which propelled data center revenue up 103% sequentially to $2.98 billion. But the stock tanked 10% early Thursday, primarily because the midpoint of Sandisk’s first quarter fiscal 2027 revenue guidance ($10.3 billion to $10.8 billion) came in below consensus estimates of $10.8 billion. Keep in mind that despite a summer swoon, Sandisk shares are still up close to 500% this year.