SanDisk and Seagate report surging earnings driven by AI data storage needs, though valuations and market expectations diverge sharply.
SanDisk’s revenue surged 251% year-over-year to $5.95 billion in the March quarter, with datacenter revenue jumping 645% to $1.467 billion. Gross margins expanded to 78.4% from 22.5%, reflecting tight NAND supply and strong AI-driven demand for high-speed flash storage.
Seagate posted a 44.1% revenue increase to $3.11 billion, while free cash flow nearly quadrupled to $953 million. The company highlighted durable 47% gross margins and nearline capacity commitments through mid-2026, contrasting with SanDisk’s 60x P/E and exposure to NAND pricing volatility.
Both stocks have retreated recently, with SanDisk down 23% and Seagate off 19% over the past month, signaling elevated investor expectations already priced in.