SanDisk Posts $5.95 Billion Quarter on AI Storage Demand, Announces $6 Billion Buyback
SanDisk reported revenue of $5.95 billion in its latest quarter, driven by strong demand for AI storage in data centers. The company also announced a $6 billion share buyback and disclosed $42 billion in long-term supply contracts.
SanDisk posted a strong quarter with revenue of $5.95 billion, well ahead of analyst expectations, as demand for AI storage in data centers pushed results higher. The company also announced a $6 billion share buyback and said three of its five long-term supply contracts are worth a combined $42 billion.
The results show that the AI infrastructure boom is not limited to chips and computing power. Storage is becoming a critical part of the data center buildout, and SanDisk is positioned as a key supplier.
The company said demand for high-capacity storage is rising as AI workloads generate and process larger volumes of data. Training large AI models requires storing enormous datasets, and running those models in production requires fast, reliable storage at scale.
The $42 billion in long-term supply contracts gives SanDisk visibility into future revenue and signals that major data center operators are locking in supply agreements to avoid shortages.
The $6 billion buyback reflects management's confidence in the company's financial position. Buybacks reduce the number of shares outstanding, which can increase earnings per share over time.
SanDisk's results follow strong quarters from other AI infrastructure companies. Amazon's AWS revenue grew 28 percent to $37.6 billion in its most recent quarter, driven by demand for AI chips and enterprise workloads. Microsoft's Azure grew 40 percent, though investors questioned whether the company's capital spending is growing too fast.
Analysts say the storage sector is entering a period of sustained demand as AI adoption spreads from large technology companies to enterprises across industries.
