Sandisk forecasts upbeat quarterly revenue on AI-driven demand

• Sandisk's board approved an additional $14 billion share repurchase program, bringing its total remaining buyback authorization to $15.5 billion.

Aug. 5 (Reuters) - Sandisk forecast quarterly revenue above estimates on Wednesday, banking on rising demand for its memory chips used in AI data centers.

Shares of the Milpitas, California-based company fell more than 3% in extended trading, after rising more than five-fold this year alongside a broader rally in memory and storage stocks fueled by higher chip prices and optimism over AI-driven demand.

• The company's fourth-quarter data-center revenue more than doubled from the third quarter to $2.98 billion, capping a strong year for the company since separating from Western Digital WDC.O in early 2025.
• Sandisk reported fourth-quarter revenue of $8.97 billion, beating estimates of $8.39 billion. Adjusted profit came in at $39.25 per share, exceeding estimates of $34.45.
• The company said it had signed five additional agreements under its new business model since April, including three with new customers and two expansions of existing deals.

Here are some more details:

• The company forecast first-quarter revenue between $10.30 billion and $10.80 billion, the midpoint of which is above analysts' average estimate of $10.47 billion, according to data compiled by LSEG.