Sandisk Corp (NASDAQ:SNDK) shares are surging on Monday on continued momentum following a strong earnings report last week that exceeded expectations. Here’s what investors need to know.
Sandisk’s Earnings Surprise: What It Means For Investors
Sandisk reported adjusted earnings per share of $6.20, significantly beating the consensus estimate of $3.12, alongside revenue of $3.02 billion, which also surpassed expectations of $2.59 billion.
The company highlighted a remarkable 64% sequential increase in datacenter revenue, driven by strong demand from AI infrastructure builders and technology companies.
In addition to the impressive second-quarter results, Sandisk provided optimistic guidance for the third quarter, projecting adjusted earnings per share between $12.00 and $14.00, compared to the consensus estimate of $3.63.
Revenue expectations for the third quarter are set between $4.40 billion and $4.80 billion, well above the consensus estimate of $2.62 billion.
The broader market is experiencing gains, with the Nasdaq-100 up 1.45% today. Sandisk’s rise aligns with this positive trend, indicating that the stock is also benefiting from favorable market conditions Monday afternoon.
Surging Sandisk: Unprecedented 12-Month Gains
Currently, Sandisk is trading 57.6% above its 20-day simple moving average (SMA) and 192.9% above its 100-day SMA, demonstrating strong upward momentum. Over the past 12 months, shares have skyrocketed by 1274.92%, and they are currently positioned closer to their 52-week highs than lows.
The RSI stands at 83.84, indicating that the stock is in overbought territory, while the MACD is above its signal line, suggesting bullish momentum. The combination of an overbought RSI and a bullish MACD indicates that while the stock is performing well, caution may be warranted as it could be due for a pullback.
How Sandisk Is Capitalizing On AI Demand
Sandisk is one of the five largest suppliers of NAND flash memory semiconductors globally. The company is vertically integrated, producing most of its flash chips at manufacturing sites across Japan through a joint-venture framework with Kioxia. Sandisk then repackages these chips into solid-state drives (SSDs) for various applications, including consumer electronics and cloud storage.
The recent earnings report highlights the company’s strong position in the market, particularly with the increasing demand for AI-related technologies.
As Sandisk continues to align its supply with market demand, it is well-positioned for future growth.
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $466.29. Recent analyst moves include:
- Jefferies: Buy (Raises Target to $700.00) (Jan. 30)
- Goldman Sachs: Buy (Raises Target to $700.00) (Jan. 30)
- RBC Capital: Sector Perform (Jan. 30)
SNDK Shares Surge Monday
SNDK Price Action: SanDisk shares were up 15.14% at $663.49 at the time of publication on Monday, according to Benzinga Pro data.
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