Sandisk Jumps as AI Data-Center Demand Tightens NAND Supply and Lifts Outlook
The company is securing one- to five-year contracts with customers who signal demand through 2028.
Overview
- Shares rose 25.5% for the week, including a 6.92% gain Friday during a broader selloff that saw investors buy AI and storage names.
- Q2 FY2026 net income increased 672% to $803 million as revenue climbed 61% to $3.025 billion, led by enterprise SSD strength.
- For Q3, Sandisk guides $4.4–$4.8 billion in revenue and 65%–67% gross margins, and it expects NAND supply to be tighter than in Q2.
- CEO David Goeckeler says data centers will be the largest NAND market in 2026, with visibility to 2028 supporting multi-year agreements and a move away from quarterly pricing.
- Management says it is entering multiyear contracts that include prepayments, while strengthening the balance sheet with debt reduced to about $603 million and strong cash generation.