SanDisk Stock Rises Over 4,000% in 12 Months as AI Storage Demand Reshapes the Market

TLDR:

• SanDisk reported Q3 earnings of $23.41 per share, beating the $14.50 estimate by a wide margin.
• Five AI companies signed $42B in multi-year supply deals, with over $11B already committed upfront.
• Data center revenue surged 233% to $1.47B, reflecting strong AI-driven demand for flash storage.
• SanDisk announced a $6B share buyback and forecast next-quarter revenue of up to $8.25 billion.

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SanDisk’s stock has climbed over 4,000% in the past 12 months, driven by surging AI storage demand.

The company, spun off from Western Digital in 2025, reported third-quarter revenue of $5.95 billion, a 251% year-over-year increase. Earnings per share reached $23.41, well above forecasts.

CEO David Goeckeler secured $42 billion in multi-year contracts with AI companies, backed by $11 billion in upfront financial guarantees.

From Losses to Record Revenue in One Year

SanDisk’s financial turnaround has been one of the most dramatic on Wall Street. Just a year ago, the company was reporting a loss of $0.30 per share.

Now, it has posted earnings of $23.41 per share against an estimate of $14.50. Revenue also came in at $5.95 billion, surpassing the $4.70 billion forecast.

Data center revenue led much of this growth, rising 233% to $1.47 billion. AI companies are actively locking in storage supply to avoid potential shortages.

The demand surge reflects how critical flash storage has become in powering large-scale AI systems. SanDisk found itself at the center of that shift at the right time.

Five AI companies have signed binding multi-year supply agreements totaling $42 billion. Over $11 billion of that amount has already been committed as upfront financial guarantees.

As Bull Theory noted on X, “These are not purchase orders. These are guarantees.” That distinction matters because it removes uncertainty from SanDisk’s revenue pipeline for the near term.

Looking ahead, SanDisk is forecasting next-quarter revenue between $7.75 billion and $8.25 billion. That guidance comfortably exceeds Wall Street’s estimate of $6.49 billion.

The forward outlook reflects continued confidence in AI-driven storage demand. Management’s numbers suggest the momentum is not slowing down anytime soon.

Stock Performance and Capital Return Plans

SanDisk was the best-performing stock in the entire S&P 500 in 2025, posting a 729% annual gain. In 2026, it has continued that run, becoming the top-performing stock year-to-date.

The share price has moved from lows near $33 to close to $1,187. That trajectory places it among the most talked-about turnaround stories in recent market history.

The company also announced a $6 billion share buyback program at all-time highs. Buybacks at record prices are typically seen as a sign of management confidence in future value.

For SanDisk, this move signals that leadership believes the current valuation is still justified. Strong cash flow generation has made the program financially feasible.

Peers like Micron and Western Digital have also seen notable gains tied to AI storage demand. However, SanDisk’s scale of growth stands apart from the broader sector.

Its spinoff structure allowed it to move quickly and focus entirely on flash storage solutions. That independence appears to have worked in its favor.

Bull Theory’s post on X summed up the shift plainly: “The AI storage shortage did not just save SanDisk. It turned it into one of the most important companies in the world.”

Whether that status holds will depend on how long AI infrastructure spending continues at its current pace.

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