SanDisk Reports $42 Billion Backlog Amid AI Memory Demand Surge
Sandisk Corporation has reported a backlog of between $41.6 billion and $42 billion, driven by strong demand for memory chips in the data center sector amid an ongoing AI infrastructure boom. The company's performance reflects broader industry trends as hyperscaler capital expenditures are projected to reach $750 billion this year, with total AI infrastructure spending expected to hit $7.6 trillion through 2031. This has led to a shortage of NAND and DRAM memory due to capacity constraints at chipmakers like TSMC. Despite strong fundamentals—including an 858% stock price surge since its spinoff from Western Digital—Sandisk shares have declined in recent weeks amid broader market volatility affecting the semiconductor sector. Analysts attribute this pullback more to valuation adjustments than a drop in demand or earnings potential, with Goldman Sachs recently raising Sandisk's price target while lowering its valuation multiple. Institutional confidence remains high: hedge fund ownership of Sandisk increased by 52% in Q1 2026. Short interest is low at just under 5%, indicating reluctance among bears to bet against the company’s long-term contracted revenue.
Topics: AI infrastructure backlog memory stocks revenue growth