Sandisk (SNDK) secured $93.9 billion in minimum contracted revenue from 8 datacenter customers, backed by $16.5 billion in financial guarantees. Datacenter revenue surged 437% year-over-year as AI demand converts NAND memory from a boom-bust commodity into a contract-driven, high-margin business. Sandisk targets mid- to high-teens revenue growth through 2030 at 80% gross margins, with $15.5 billion remaining in share repurchase authorization.
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It is also reshaping the economics of the memory industry, where years of boom-and-bust cycles are giving way to something far more predictable. AI workloads need enormous amounts of storage, and that demand is arriving as data-center operators commit to capacity years in advance. That shift matters for investors because predictable demand can be worth almost as much as higher prices.
Sandisk (NASDAQ:SNDK) just gave shareholders a $93.9 billion reason to believe its business is becoming less cyclical — and much more valuable. Sandisk's fiscal fourth-quarter results showed how rapidly AI is changing its business. Revenue reached $8.97 billion, up 51% sequentially and 372% from the year-ago quarter, while non-GAAP gross margin expanded to 84.6% from 78.4% in the previous quarter.
But the more important number may not appear on the income statement. Sandisk now has signed New Business Model agreements with eight Datacenter and Edge customers representing $93.9 billion of minimum contracted revenue. The agreements have a weighted-average length exceeding four years and include pricing floors and ceilings.
Sandisk believes actual pricing will be higher than the contractual minimum, giving investors a baseline rather than a ceiling for future revenue. The contracts also came with $16.5 billion of financial guarantees, according to the company's earnings release. In other words, customers aren't merely promising to buy NAND flash memory if conditions remain favorable.
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