Sandisk sees massive revenue growth driven by data center demand

Sandisk has emerged as one of the top-performing stocks in the S&P 500 following its February 2025 separation from Western Digital. The company reported fourth-quarter fiscal year 2026 revenues of $8.97 billion, representing a 372% increase year-over-year and a 51% increase from the previous quarter.

Growth has been heavily driven by the data center segment, which saw quarterly revenues reach $2.98 billion, a 103% jump from the prior quarter. While rising sales prices accounted for approximately two-thirds of the revenue growth, increased volume contributed the remaining third. For the first quarter of fiscal year 2027, Sandisk expects revenues between $10.3 billion and $10.8 billion, with gross margins projected between 83% and 85%.

The surge is linked to high demand for NAND memory used in SSDs and data storage. Although TrendForce predicts the rapid rise in contract prices for NAND memory may slow in the third quarter, the market is closely watching whether artificial intelligence demand will permanently alter the historically cyclical nature of the memory industry.