Renaissance Technologies Trims Sandisk Stake as Data Storage Giant Reports Record Revenue
Sandisk posts $5.95 billion in third-quarter fiscal 2026 revenue, driven by a 645% surge in datacentre segment sales linked to cloud and deep-learning demand.
Renaissance Technologies has reduced its holding in Sandisk Corporation by more than 33 per cent in the first quarter of 2026, bringing its position down to nearly 800,000 shares. The divestment follows a period of aggressive accumulation by the hedge fund, which first disclosed a stake in the company in the second quarter of 2025. At that time, the fund held 413,000 shares, a position it expanded by over 100 per cent in the subsequent quarter to exceed 835,000 shares. By the fourth quarter of 2025, the fund had added a further 44 per cent to its position before initiating the recent trim.
The reduction in exposure comes shortly after Sandisk reported robust financial results for the third quarter of fiscal 2026. The data storage manufacturer posted revenue of $5.95 billion, representing a 251 per cent increase year-on-year compared to the $1.7 billion recorded in the prior-year quarter. The company also reported a net income of $3.62 billion, marking a significant turnaround from the $1.93 billion net loss incurred during the same period last year.
A key driver of this performance was the datacentre segment, where revenue surged by 645 per cent quarter-on-quarter. This exponential growth was attributed to cloud expansion within Asian enterprise markets and increasing demand for deep-learning workloads. The strong operational results allowed Sandisk to post diluted adjusted earnings per share of $23.41, significantly exceeding Wall Street consensus estimates of $14.36 by 63 per cent.
Despite the recent reduction in shares, Sandisk remains a notable component of Renaissance Technologies’ portfolio. In a recent assessment of the firm’s holdings, the company was ranked as the ninth best stock according to the fund’s strategy. The hedge fund, founded by the late Jim Simons and managed by figures including Carl C. Icahn and Chris Rokos, has maintained a focus on the company’s potential despite the recent portfolio adjustment.
The filing data highlights the volatility inherent in institutional positioning, particularly in sectors tied to artificial intelligence infrastructure. While Renaissance Technologies continues to view Sandisk as a high-performing asset, the decision to trim the stake in the first quarter of 2026 suggests a rebalancing of capital allocation. The move underscores the rapid pace at which large funds adjust their exposure to data storage and AI-related equities in response to both market dynamics and corporate earnings reports.
