SanDiskShares of the company jumped 14% after the company’s fiscal second-quarter results beat Wall Street expectations. AI The economic boom has led to a surge in demand for its chips.

flash memory memory The company reported earnings of $6.20 per share, excluding items, beating the $3.62 per share expected by analysts polled by FactSet. Revenue totaled $3.03 billion, beating estimates of $2.69 billion.

The stock price rose more than 20% before the market opened.

Sandisk’s third-quarter forecast also beat analysts’ expectations.

Sandisk expects revenue in the range of $4.4 billion to $4.8 billion for the current quarter. That beat FactSet’s forecast of $2.93 billion. The company expects third-quarter adjusted earnings in a range of $12 to $14 per share, more than double the $5.11 analysts expected.

Raymond James Analyst Upgrade inventory to an outperform rating, citing strong pricing momentum for Sandisk as new supply struggles to come online.

“We know demand is exceptionally strong and will likely only grow, and supply is tightening and may sell out within years,” the company wrote. It believes the company should benefit from “longer-lived” data center production.

Memory companies like Sandisk are seeing a boost from soaring demand for memory as companies race to funnel more storage supply into power-hungry data center buildouts to fuel the artificial intelligence revolution.

The company’s data center business grew 64% sequentially.

The backdrop also creates a supply-demand imbalance that allows memory companies to raise prices and maintain strong profit margins.

Sandisk said it expects third-quarter gross margin to be between 65% and 67%, well above the 49.3% expected by analysts polled by StreetAccount.

The memory shortage has affected many areas of the technology industry, apple Cited its own supply issues when reporting first quarter income Thursday.

CEO Tim Cook It said advanced node manufacturing prevents it from producing more iPhones, but the company will be hit by rising iPhone prices. memory price.

Cook said Apple is considering “a range of solutions.”

watch: Sandisk quarterly results beat expectations, shares rise more than 15%