Sandisk Outperforms Micron Amid AI Memory Supercycle
The article discusses Sandisk’s (SNDK) strong performance as a standalone public company, driven by the artificial intelligence memory supercycle. In its first full year post-spinoff from Western Digital, Sandisk reported $20.25 billion in revenue for 2023, with Q4 revenue reaching $8.9 billion—up 372% annually and fueled largely by pricing power rather than volume growth. The data center segment has become a key driver of growth, contributing over one-quarter of Sandisk’s quarterly sales and growing at an annual rate exceeding 1,300%. The company now holds $93.9 billion in New Business Model agreements with guaranteed floor prices, providing long-term visibility into future demand. The article also highlights how major tech leaders like Tim Cook (Apple), Elon Musk (Tesla), Jensen Huang (Nvidia), and Andy Jassy (Amazon) have all acknowledged the ongoing memory shortage and rising costs. These companies are securing multiyear supply agreements to lock in pricing, reinforcing Sandisk’s position as a key beneficiary of this trend.
Topics: Artificial Intelligence Data Center Growth DRAM/HBM Memory Market NAND Flash