SanDisk Soars to Record High on AI-Driven Demand, Quarterly Profit Up 672%

Shares of SanDisk Corporation (NASDAQ:SNDK) surged to a historic high on Friday, propelled by a staggering 672% year-over-year jump in quarterly net income. The data storage giant’s financial results for its second fiscal quarter of 2026 far exceeded market expectations, highlighting its pivotal role in the infrastructure powering the artificial intelligence boom.

During intraday trading, SNDK stock briefly skyrocketed 25% to a record $676.69 before paring gains to close at $576.25, still up 6.85% for the session. The rally was ignited by the company's earnings release, which reported net income of $803 million, a dramatic increase from $104 million in the same period last year. Revenue climbed 61% to $3.025 billion, with operating income soaring 446% to $1.065 billion.

"Our performance this quarter reflects the strategic alignment of our product portfolio with the most demanding technological shifts of our time," said SanDisk CEO David Goeckeler. "The acceleration in enterprise SSD adoption and the critical need for high-performance storage in AI data centers are driving unprecedented demand." The company's Edge segment led revenue contributions at $1.678 billion, followed by Consumer ($907 million) and Data Center ($440 million) divisions.

Industry analysts point to SanDisk’s positioning at the nexus of two powerful trends: the exponential data needs of generative AI models and a broader recovery in the memory chip market. For the upcoming third quarter, SanDisk provided an optimistic forecast, projecting revenue between $4.4 billion and $4.8 billion with robust gross margins anticipated between 64.9% and 66.9%.

Market Perspectives:

• Michael Chen, Portfolio Manager at Horizon Capital: "This isn't just a beat; it's a paradigm shift. SanDisk has transitioned from a consumer flash memory vendor to an essential AI infrastructure player. Their guidance suggests this growth trajectory is sustainable."
• Sarah Wilkins, Independent Tech Analyst: "While the numbers are impressive, valuation concerns are real. The stock's run-up prices in perfection. Any hiccup in AI spending or an industry supply glut could lead to a sharp correction."
• David Park, Retail Investor: "I've held this through multiple cycles, and this feels different. The AI tailwind is concrete. They're not just selling chips; they're selling the picks and shovels for the AI gold rush."
• Rebecca Moss, Editor at 'The Skeptical Investor' Newsletter: "A 672% profit spike is a red flag, not a victory lap. This is peak-cycle euphoria. The entire sector is overheating, and SanDisk is the poster child. This is a classic 'buy the rumor, sell the news' setup—profits will normalize, and this stock will crash back to earth."

SanDisk's performance underscores a broader rally in semiconductor stocks benefiting from AI capital expenditure, though it also raises questions about how long such explosive growth rates can be maintained in a competitive and cyclical industry.