By Anhata Rooprai
April 30 (Reuters) - Sandisk (SNDK.O) forecast quarterly revenue above estimates on Thursday, joining peers Western Digital (WDC.O) and Seagate (STX.O) in signaling that enterprise spending on data storage products used in artificial intelligence data centers remains strong. Sandisk shares, which have risen about 350% this year, fell over 6% in extended trading, following a sharp AI-driven rally in storage stocks earlier this week sparked by Seagate’s strong forecast. Western Digital (WDC.O) , whose shares have more than doubled this year, also slipped nearly 8% even as it forecast quarterly revenue above estimates.
Western Digital and Sandisk’s outlooks are “failing to provide the necessary ‘wow factor’ needed to sustain the breakneck momentum,” Michael Ashley Schulman, Partner at Cerity Partners said, addressing the sell-off of the stocks.
The explosive growth in generative AI, which requires massive computational power and storage, has boosted demand for the company’s high-performance enterprise solid-state drives in data centers.
AI systems require more data storage, driving demand for flash-memory chips faster than supply can keep up. This shortage allows Sandisk to charge higher prices. The company expects revenue of between $7.75 billion and $8.25 billion for the fourth quarter, compared with analysts’ average estimate of $6.49 billion, according to data compiled by LSEG.
It also expects adjusted profit between $30 and $33 per share, above estimates of $22.70.
“This quarter marks a fundamental inflection point for Sandisk — where our technology leadership is enabling a deliberate shift in our mix toward the highest-value end markets, led by Datacenter,” CEO David Goeckeler said.
Revenue in the company’s Datacenter segment, which includes high-capacity flash memory storage solutions, more than tripled in the third quarter to $1.47 billion.
It reported a 97% rise in third-quarter revenue to $5.95 billion, beating estimates of $4.70 billion. Adjusted profit came in at $23.41 per share, compared with estimates of $14.54 per share.
Memory chipmakers race ahead
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Don't just focus on computing power; the golden age of storage has arrived! Seagate has delivered—revenue surged 44% year-over-year, non-GAAP gross margin soared to a record high of 47%, free cash flow approached $1 billion, and Q4 guidance was significantly raised. The baton has been passed to Western Digital and SanDisk (after market close, April 30). Faced with the frenzied realization of gains in the storage chain, will you follow the trend based on gut feeling, or will you use a "scientific yardstick" to measure the best odds?[Giveaway Topic] The Great Battle of Storage Giants' Earnings ReportsHow to Participate:1️⃣ Share Your Trades: Share your real-time trading operations and your entry logic.2️⃣ Opinion Sharing: Choose one of the three storage companies and comment on its earnings report or AI transformation strategy.🏆Exclusive Prize Pool:"Storage Power Prophet": 3 lucky users will receive a Changqiao custom pillow."Storage Power Pioneer Award": 10 HKD stock voucher for high-quality content."Interactive Lucky Draw Award": 288 task coins will be randomly awarded to active users.Tip: Share your winnings and strategy analysis for double your chances of winning!Deadline: May 1st, 24:00. Longbridge reserves the right to interpret these terms.

Don't just focus on computing power; the golden age of storage has arrived! Seagate has delivered—revenue surged 44% year-over-year, non-GAAP gross margin soared to a record high of 47%, free cash flow approached $1 billion, and Q4 guidance was significantly raised. The baton has been passed to Western Digital and SanDisk (after market close, April 30). Faced with the frenzied realization of gains in the storage chain, will you follow the trend based on gut feeling, or will you use a "scientific yardstick" to measure the best odds?[Giveaway Topic] The Great Battle of Storage Giants' Earnings ReportsHow to Participate:1️⃣ Share Your Trades: Share your real-time trading operations and your entry logic.2️⃣ Opinion Sharing: Choose one of the three storage companies and comment on its earnings report or AI transformation strategy.🏆Exclusive Prize Pool:"Storage Power Prophet": 3 lucky users will receive a Changqiao custom pillow."Storage Power Pioneer Award": 10 HKD stock voucher for high-quality content."Interactive Lucky Draw Award": 288 task coins will be randomly awarded to active users.Tip: Share your winnings and strategy analysis for double your chances of winning!Deadline: May 1st, 24:00. Longbridge reserves the right to interpret these terms.

Sandisk joins Western Digital, Seagate in signaling strong AI storage demand