Sandisk Secures $93.9 Billion in Long-Term Contracts Amid AI-Driven Growth
Sandisk (SNDK) has secured eight long-term contracts worth at least $93.9 billion with six clients, driven by the growing demand for storage solutions from artificial intelligence data centers. The company's fiscal fourth-quarter revenue reached $8.97 billion, exceeding expectations and showing a significant increase in data-center sales to $2.98 billion. This surge is attributed to AI workloads requiring fast access to large volumes of data. The contracts are expected to cover half of Sandisk’s output by 2027 and two-thirds by 2028, signaling long-term stability for the company's business model. However, challenges remain as NAND supply tightens due to increased demand from AI infrastructure, attracting new competitors and forcing difficult capacity allocation decisions. Sandisk also announced a $14 billion share buyback program and raised its revenue outlook for fiscal 2027’s first quarter between $10.3 billion and $10.8 billion.
Tickers: $SNDK
Topics: AI contract growth data centers NAND supply storage