Overview
- SanDisk reported a blowout fiscal fourth quarter with $8.97 billion in revenue and an unusually high non‑GAAP gross margin of about 84.6%, driven largely by higher NAND pricing plus meaningful volume gains.
- Management has disclosed New Business Model datacenter contracts that it says guarantee at least $93.9 billion in expected revenue and will cover more than half of FY2027 bit production and roughly two‑thirds of FY2028 bits.
- Datacenter sales were the primary growth engine, rising to roughly $2.98 billion and doubling sequentially as cloud providers expanded spending on AI infrastructure.
- The stock has been highly volatile, sliding about 37% from its peak after a rapid summer rally, while many Wall Street analysts keep buy ratings and elevated price targets based on the contract backlog and expanded buyback authorizations.
- Key risks remain: two‑thirds of recent sequential growth came from pricing so NAND market cyclicality could quickly compress margins, potential hyperscaler contract or technical issues could disrupt revenue, and the High‑Bandwidth Flash product roadmap remains unproven with samples expected in 2027.