SanDisk, a US maker of memory chips and SSDs, has seen its stock price soar this year. The company, which spun off from Western Digital last year and became an independent company, closed at $1,409.98 on May 6.
SanDisk shares have risen about 430 percent since the beginning of the year, according to the report. Analysts attribute this to the rapid growth in demand for memory systems for artificial intelligence servers. The company recently signed five large supply contracts worth a total of $42 billion and lasting up to five years.
SanDisk said that more than a third of its production capacity for fiscal 2027 has already been booked. The company's revenue in the third fiscal quarter increased 251 percent year-on-year to $5.95 billion. The gross profit margin was 78.4 percent.
Experts believe that long-term contracts can reduce price fluctuations in the NAND memory market. However, an increase in supply in the market or a decrease in artificial intelligence costs could put pressure on the company's revenues in the future.
