Sandisk reports record fourth-quarter revenue of $8.97 billion as stock falls on lower guidance
Sandisk reported record fourth-quarter revenue of $8.97 billion and non-GAAP earnings of $39.25 per share, comfortably beating Wall Street estimates. The company's performance was driven by explosive demand for AI memory infrastructure, which propelled data center revenue up 103% sequentially to $2.98 billion. Despite these strong results, Sandisk stock fell approximately 10% in pre-market trading after the company's first-quarter revenue guidance came in below analyst expectations. CEO David Goeckeler stated that the company has over four years of visibility on demand and remains confident in the franchise. Analysts suggest the stock remains attractive on a pullback, noting that the company is rationalizing lower bit growth by building up inventory to meet contractual obligations. Additionally, Sandisk's board of directors approved an additional $14 billion share buyback program, bringing the total authorization to $15.5 billion. While the AI trade may be beginning to stall, Sandisk continues to execute well as the AI boom keeps up demand for its memory chips.