Sandisk Corporation shares rallied +11.5% after earnings, as the company reported a significant acceleration in data center revenue, unveiled multiple new multiyear supply agreements, and reinforced its outlook for structurally higher margins and more predictable earnings.

• Data center revenue surged 233% sequentially, reflecting Sandisk's deliberate pivot toward AI-related infrastructure demand.
• Management announced five new multiyear supply partnerships, providing committed financial guarantees and enhancing earnings visibility.
• Gross margin improvements were described as "sustainable," underpinned by both technology leadership (BiCS 8) and manufacturing scale.
• Consumer segment delivered strong year-over-year revenue growth across all storage categories and geographies.
• Fiscal Q4 is expected to benefit from initial shipments of QLC Stargate solutions, further expanding the AI-focused data center portfolio.