Shares of Sandisk (SNDK 5.59%) climbed on Friday after the data storage device maker announced a blockbuster earnings report.
By the close of trading, Sandisk's stock price was up more than 6% after rising as much as 25.5% earlier in the day.
Image source: Sandisk.
Shocking AI-driven growth
Sandisk's revenue surged 61% year over year to $3 billion in its fiscal second quarter, which ended on Jan. 2.
Cloud computing giants are racing to secure the high-performance data storage systems they need for their artificial intelligence (AI) factories. With demand outstripping available supply, Sandisk has been able to raise prices without sacrificing sales.
The memory card manufacturer's gross margin jumped a whopping 18.6 percentage points to 51%.
"The critical role that our products play in powering AI and the world's technology is being recognized," CEO David Goeckeler said in a press release.
NASDAQ: SNDK
Key Data Points
All told, Sandisk's adjusted net income rocketed 443% higher to $967 million, or $6.20 per share. That far surpassed analysts' estimates, which had called for adjusted per-share profits of $3.54.
Management sees more gains ahead
Sandisk guided for third-quarter revenue of $4.4 billion to $4.8 billion, with adjusted earnings per share of $12 to $14.
"Our structural reset to align supply with attractive, sustained demand positions us to drive disciplined growth and deliver industry-leading financial performance," Goeckeler said.
