$SNDK has transformed from a traditional NAND supplier into a structural beneficiary of AI storage demand.

In fiscal 2026, Sandisk delivered $20.25 billion in revenue, up 175 percent year-over-year. Datacenter revenue surged 437 percent to $5.2 billion as AI workloads drove both higher volumes and significantly stronger pricing. Fourth-quarter revenue reached $8.97 billion, with sequential growth driven roughly two-thirds by price and one-third by volume.

The defining strength of Sandisk is its New Business Model agreements. The company has locked in multi-year contracts with key data center and edge customers covering approximately $93.9 billion in minimum contracted revenue. These agreements include volume commitments and pricing floors, providing a level of visibility that traditional memory companies rarely achieve.

For the first quarter of fiscal 2027, Sandisk guided revenue between $10.3 billion and $10.8 billion. Management expects bits to remain on allocation beyond calendar 2026 as AI inference continues to expand storage intensity.

While NAND remains cyclical by nature, Sandisk’s contracted backlog and mix shift toward high-value data center SSDs have meaningfully improved the quality and durability of its earnings power.

For $SNDK, the opportunity is no longer just rising prices. It is the combination of AI-driven demand and a more resilient commercial model.
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