Canaccord on $SNDK Sandisk: 'The star was the data center business'. Sandisk just delivered another blowout. Revenue nearly quintupled year over year to $11 billion, beating estimates by about $400 million, and adjusted EPS of $49.51 topped the $46.22 consensus. The star was the data center business, which surged 61% in a single quarter to $4.8 billion. That's hyperscaler AI spending landing directly in Sandisk's order book, the same signal we got this week from Seagate, SK Hynix, Silicon Motion and Intel's data center unit. Gross margins hit an astonishing 85%, management guided for more of the same next quarter with EPS of $55 to $57 (vs. $53 expected), and it bought back $5 billion of stock at prices well above today's. Yes, sequential growth is slowing and the consumer business fell 29%. But that's AI soaking up memory supply and pricing out lower-end buyers, which is a sign of tight supply, not a peak. With Amazon, Alphabet and Microsoft all signaling bigger AI budgets into 2027 and 2028, the demand runway looks intact. At roughly 6X annualized earnings, the stock is pricing in a bust the numbers just aren't showing."