Memory chip maker Sandisk reported a blockbuster quarter, with revenue tripling to $5.95 billion, far exceeding analyst estimates. The company forecasts another strong quarter ahead, driven by surging demand for NAND storage memory used in AI data centers.
CEO David Goeckeler announced five long-term supply agreements worth at least $42 billion, designed to break the industry's historic boom-bust cycle. The contracts include price floors and ceilings, with penalties for customers who walk away.
Sandisk also authorized a $6 billion share buyback. Adjusted profits hit $23.41 per share, a massive turnaround from a loss last year. Current quarter guidance calls for sales of up to $8.25 billion, well above Wall Street expectations.