SanDisk shares dive 14% after soft revenue forecast eclipses strong Q4 earnings | Stock Market News

Shares of SanDisk plunged 14% on Thursday, 6 August, falling to an intraday low of $1,163 apiece, after the company's revenue outlook disappointed Wall Street, overshadowing a stronger-than-expected performance in the fiscal fourth quarter.

Investors appeared concerned about whether the memory-chip maker can sustain its exceptionally high profit margins after a sharp rally in the stock and a significant jump in AI-driven demand.

For the fiscal fourth quarter, SanDisk reported revenue of $8.97 billion, nearly five times higher than the $1.9 billion reported in the corresponding period last year. The figure also exceeded Wall Street's estimate of $8.39 billion.

The performance was largely driven by a surge in spending by cloud hyperscalers such as Meta, Amazon, Alphabet, and Microsoft, which continue to purchase large volumes of memory chips to power AI data centres, keeping demand well ahead of supply.

Adjusted earnings came in at $39.25 per share, comfortably beating Wall Street's estimate of $34.96 per share. A year ago, the company had reported adjusted earnings of $0.29 per share on revenue of $1.9 billion, translating into a roughly 13,500% jump in adjusted earnings and a 372% increase in revenue.

Net income stood at $6.9 billion, or $43.97 per share, compared with a net loss of $23 million, or 16 cents per share, in the year-ago quarter.

The sharp turnaround underscores how enterprise storage has evolved from a commoditised hardware business into a critical component of AI infrastructure, driven by rising demand for training and deploying large language models and generative AI applications.

Looking ahead, SanDisk expects first-quarter fiscal 2027 revenue in the range of $10.3 billion to $10.8 billion, a forecast that fell short of investors.

The company expects adjusted earnings per share of $44.00-$46.00, broadly in line with analysts' estimate of $44.20 per share.

SanDisk also said it has eight long-term agreements with six customers worth at least $93.9 billion, with a median contract duration of four years. The company added that it has signed five additional agreements since April, reflecting continued demand for its AI-related storage products.

The stock has delivered exceptional gains over the past year as technology giants and cloud providers ramped up investments in large-scale AI data centres, driving demand for enterprise solid-state drives (eSSDs) far beyond global supply.

During this period, the stock has surged from $47 to Wednesday's closing price of $1,350, translating into a remarkable 2,772% gain. Although the stock corrected 46% in June, its longer-term returns remain impressive.

So far in 2026, the stock has rallied 443%. During the year, it also crossed the $2,300 mark to hit a record high of $2,354 before witnessing a pullback.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

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