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Sandisk CEO David Goeckeler reports strong fiscal year sales and AI-driven demand despite a slight guidance miss.

Sandisk CEO David Goeckeler reported that the company closed its fiscal year with $20.2 billion in sales, a significant increase from $7.4 billion the previous year. This growth was driven by explosive demand for AI memory infrastructure, which propelled data center revenue up 103% sequentially to $2.98 billion. Despite a slight miss in first-quarter revenue guidance, which caused the stock to drop 10% early Thursday, analysts remain optimistic about the company's long-term outlook. Barclays analyst Tom O'Malley noted that the company is rationalizing lower bit growth by building up inventory to meet contractual obligations. Citi analyst Asiya Merchant highlighted that the industry remains in tight production supply, with eSSDs benefiting from strong hyperscale demand for generative-AI training. The administration announced that the company's fundamental story remains strong, and executives gave no indication that the core narrative shifted negatively. David Goeckeler emphasized that the company has over four years of visibility on demand from its largest customers.

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