Demand for SSDs is Growing

The development of artificial intelligence has increased demand for data storage devices. This trend has also affected Sandisk's results, as the company manufactures NAND memory required for SSDs.

Data centers now need large quantities of SSDs. Demand exceeds supply, which has caused SSD prices to rise, positively impacting Sandisk's revenue and profit. The company's share price has increased by more than 700% in the current year.

Spending by technology giants also drives demand growth. Large companies are investing hundreds of billions of dollars in data centers and technical resources needed for artificial intelligence. Analysts expect SSD demand to nearly double by 2027.

Expectations are also high for Sandisk. According to forecasts, the company's revenue could increase by 122% in the 2027 fiscal year. Despite the share price already rising sharply, some analysts believe that demand for data storage devices provides the company with additional growth opportunities.

Source: Investing.com