Sandisk's banal popped 14% aft the institution crushed Wall Street's fiscal second-quarter estimates, arsenic the artificial intelligence roar sent request for its chips skyrocketing.
The flash retention memory institution reported net of $6.20 per share, excluding items, blowing past the $3.62 per stock expected by analysts surveyed by FactSet. Revenue totaled $3.03 billion, topping a forecast of $2.69 billion.
Shares had jumped much than 20% successful the premarket.
Sandisk's third-quarter forecast besides outpaced expectations for analysts.
Sandisk guided for betwixt $4.4 cardinal and $4.8 cardinal successful gross for the quarter. That blew distant the $2.93 cardinal expected by FactSet. The institution expects adjusted net betwixt $12 and $14 per stock successful the 3rd quarter, much than treble the $5.11 estimation from analysts.
Raymond James analysts upgraded the stock to an outperform rating, citing Sandisk's pricing momentum arsenic caller proviso struggles to travel online.
"We cognize request is exceptionally beardown and apt lone growing, proviso is tightening to the constituent of perchance being sold retired for years," the steadfast wrote, believing the institution should payment from "longer-lived" datacenter production.
Memory companies similar Sandisk are seeing a boost from skyrocketing representation need, arsenic businesses contention to funnel much retention proviso into the power-hungry datacenter buildout that's fueling the AI revolution.
The company's datacenter concern grew 64%, sequentially.
This backdrop has besides created a proviso and request imbalance that's allowed representation companies to hike prices and support beardown margins.
Sandisk said it expects third-quarter gross margins to scope betwixt 65% and 67%, acold up of the 49.3% expected by analysts polled by StreetAccount.
The representation shortage has deed aggregate areas of the tech sector, and Apple reported proviso issues of its ain erstwhile it reported first-quarter earnings connected Thursday.
CEO Tim Cook said entree to precocious node manufacturing was keeping it from making much iPhones, but the institution would beryllium deed by rising memory prices.
Cook said Apple was looking astatine "a scope of options to woody with that."
WATCH: Sandisk banal pops much than 15% connected better-than-expected quarterly results
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