Sandisk (SNDK) Barclays 23rd Annual Global Technology Conference summary

Market dynamics and demand trends

• Market is rapidly evolving, with supply valued over price and ongoing rebalancing of supply-demand equilibrium.

• Structural changes post-2023 downturn have led to less capital investment and a shift to mid-teens growth rates.

• Data center demand is projected to surpass mobile as the largest NAND consumer by 2026, with significant growth expected.

• Customers are increasingly seeking certainty of supply, prompting discussions on longer-term agreements.

• Industry is moving toward more thoughtful supply management, with capital allocation based on long-term demand visibility.

Financial outlook and capital strategy

• Gross margin target is 35% through-cycle, with current guidance aiming to exceed this due to changing market dynamics.

• Prudent capital management continues, with ongoing reduction of term loan balance from $2 billion to $1.3 billion.

• Capacity expansion decisions hinge on sustained, long-term demand visibility rather than short-term fluctuations.

• Commitment to maximizing value across consumer, edge, and data center markets, maintaining optionality in all segments.

Technology and innovation

• BiCS8 node transition is on track, with 15% portfolio penetration and plans to reach 40-50% by fiscal year-end.

• HBF (High Bandwidth Flash) is being developed to address AI and data center needs, with memory die expected in late 2026 and controller in early 2027.

• Collaboration with ecosystem partners, including Hynix, is key to integrating new technologies into customer roadmaps.

• NAND's scalability positions it as a critical component in evolving AI and data center architectures.