In the most recent quarter, SanDisk’s data center storage revenue jumped 64% sequentially to $440 million, reflecting a rapid shift toward high-margin enterprise solutions. This performance significantly outpaced consensus expectations and underscored the company’s role as a critical supplier of flash hardware used in AI model training. Total quarterly revenue reached $3.03 billion, representing 61% year-over-year growth driven primarily by surging demand from hyperscale cloud providers.

SanDisk delivered a gross margin of 51.1%, up from 29.9% in the same period last year, as favorable product mix and tight industry supply dynamics allowed for higher ASPs. Management guided third-quarter gross margins to an even stronger 65%–67% range. Non-GAAP earnings per share are projected between $12 and $14, demonstrating a steep upward trajectory from $6.20 in the prior quarter and just $1.22 in the first quarter, suggesting continued operating leverage as volumes ramp.

The Arizona State Retirement System took a new position of 40,752 shares, valued at approximately $4.57 million, in the latest disclosure, highlighting growing institutional conviction. This follows the strategic separation from its former parent, which unlocked a pure-play memory and SSD specialist now better positioned to negotiate long-term supply agreements. Between November 2025 and February 2026, shares appreciated by 242%, reflecting both improved fundamentals and re-rating by the investment community.

SanDisk is uniquely positioned to benefit from a multi-year upswing in flash storage requirements as AI workloads proliferate. Industry backlogs have stretched lead times for NAND modules, giving the company pricing power and insulating it from commoditized competition. Analysts forecast continued tightness in memory supply, and with enterprise and hyperscale customers locking in capacity through 2028, SanDisk’s revenue and earnings growth trajectory looks sustainable over the next two to three years.