Can Strong Data Center & Edge Boost SNDK's Top Line in Q4 Earnings?

Sandisk’s Data Center business is expected to have benefited from accelerating AI infrastructure investments and rising enterprise SSD adoption in the fourth quarter of fiscal 2026. The company has built a comprehensive enterprise SSD portfolio centered on high-performance TLC drives for AI inference workloads and QLC solutions for capacity-intensive applications.

Strong demand from hyperscale cloud providers, expanding customer qualifications and increasing adoption of AI storage architectures likely supported higher enterprise SSD shipments during the reported quarter. Management also emphasized that inference workloads, including KV Cache and retrieval-augmented generation (RAG), are driving greater demand for low-latency NAND storage, positioning Sandisk to benefit from the ongoing expansion of AI data centers.

The Zacks Consensus Estimate for fiscal fourth-quarter Data Center revenues is pegged at $2.714 billion, indicating sequential growth of 85%.

However, Sandisk is facing stiff competition from the likes of Micron Technology MU, Seagate Technology STX and SK Hynix SKHY in the data center space. Micron poses a significant competitive threat to Sandisk in both the data center and edge markets through its expanding enterprise SSD portfolio and AI memory leadership. SK hynix is strengthening its position against Sandisk by rapidly expanding its enterprise SSD business alongside AI memory products. Seagate is emerging as a formidable competitor by promoting HDDs as an essential component of AI storage architectures rather than relying solely on flash.

SNDK’s Edge: AI PCs and Premium Smartphones to Drive Growth

Sandisk’s Edge business is expected to have benefited from increasing adoption of AI-enabled PCs and premium smartphones, which require higher-capacity, high-performance flash storage. Management noted that on-device AI capabilities are raising storage requirements, resulting in a favorable mix toward premium configurations and higher-value customers. 

The company also pointed to healthy demand across PCs, smartphones, automotive and IoT markets, supported by broad-based adoption of NAND across intelligent edge devices. These trends, combined with Sandisk’s strong position in client storage solutions, are likely to have supported Edge revenues during the reported quarter.

The Zacks Consensus Estimate for fiscal fourth-quarter Edge revenues is pegged at $4.396 billion, indicating sequential growth of 20%.

Zacks Rank 

Sandisk currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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