Sandisk (SNDK) Jumps 21.6% as Profits Spike

We recently published Millionaire Makers: 10 Stocks That Paid Off Big Last Week.  Sandisk Corporation (NASDAQ:SNDK) was one of the top performers last week.

Sandisk capped off the trading week higher by 21.6 percent as investors gobbled up shares after reporting a 672 percent net income expansion and gunning for as much as a 183 percent revenue jump in the third quarter of the year.

In an updated report, Sandisk Corporation (NASDAQ:SNDK) said that net profit surged to $803 million from only $104 million in the same period last year, while operating income climbed by 446 percent to $1.065 billion from $195 million.

Revenues, on the other hand, rose by 61 percent to $3.025 billion from $1.876 billion, with the bulk owed to the Edge segment at $1.678 billion, followed by consumer at $907 million, and data center at $440 million.

Data center revenues alone were driven by the strong adoption among AI infrastructure developers, semi-custom customers, and technology companies deploying AI at scale.

For the third quarter of the year, revenues are targeted at a range of $4.4 billion to $4.8 billion, or an implied expansion of 159 percent to 183 percent from the $1.695 billion reported in the same period a year earlier. Gross margins are expected to be at 64.9 percent to 66.9 percent.

While we acknowledge the potential of SNDK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.