SanDisk shares declined 9.3% in premarket trading on Oct 30, despite the company posting first-quarter results that surpassed analyst projections. Revenue for the quarter grew 378% year-over-year to $11.03B, beating the $10.64B forecast, while adjusted earnings per share of $49.51 outperformed the expected $46.22. The growth was led by the company’s data center segment, which generated $4.8B in revenue, a 61% increase from the previous quarter, as hyperscalers and AI infrastructure providers expanded their NAND storage requirements.

The company forecast second-quarter adjusted earnings per share between $55 and $57 and revenue of $12.2B to $12.6B. To broaden its investor base, SanDisk announced an 8-for-1 stock split effective Nov 19, alongside $5B in share buybacks for approximately 3.2M shares. While SanDisk’s CEO stated that AI-driven demand for memory is structural and likely to persist beyond 2030, the company’s consumer business remains a drag, with revenue falling 39% year-over-year to $397M.