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Sandisk, Western Digital Drag on Chip Stocks as Lofty Expectations Eclipse Strong Earnings
The memory chip maker fell 5% after first-quarter revenue guidance of $10.3 billion to $10.8 billion missed LSEG estimates, traders said.
- Shares of SanDisk fell 9.2% on Thursday after the data storage company issued first-quarter revenue guidance between $10.3 billion and $10.8 billion, falling short of high market expectations despite beating quarterly earnings estimates.
- Record revenue of $8.97 billion in the fourth fiscal quarter, up 372 percent year-over-year, reflected a fundamental shift toward Datacenter, which grew from 12% of total bits to 38% as AI infrastructure demand accelerated.
- Operating cash flow surged to $7.1 billion from $1.02 billion in the prior quarter, while gross margin reached a record 84.6%, demonstrating the company's ability to convert revenue growth into cash and profitability.
- SanDisk locked in $93.9 billion in minimum contracted revenue through long-term agreements with 8 major clients over 5 years, backed by $16.5 billion in financial guarantees to protect against customer defaults.
- Brokerage RBC Capital Markets warned that "investor skepticism to continue" as margins near peaks and price growth moderates, despite the company's structural advantages in a market expected to surpass $300 billion by calendar 2026.
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SanDisk shares dive 14% after soft revenue forecast eclipses strong Q4 earnings
SanDisk shares dropped 14% to $1,163 after disappointing revenue forecasts, despite better-than-expected fiscal Q4 results. Revenue surged to $8.97 billion, driven by AI demand from major firms.
·New Delhi, India
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Sandisk, Western Digital weigh on chip sector as high expectations eclipse strong earnings
Data storage companies tumbled on Thursday after quarterly results from Sandisk and Western Digital failed to sustain momentum in an industry that has become one of Wall Street's hottest bets this year.
·London, United Kingdom
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Coverage Details
Total News Sources16
Leaning Left3Leaning Right0Center7Last UpdatedBias Distribution70% Center
Bias Distribution
- 70% of the sources are Center
70% Center
L 30%
C 70%
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