Sandisk (SNDK) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Market and technology overview

• Storage technology is increasingly vital for AI and edge applications, driving higher demand for high-performance flash-based solutions.

• The business is experiencing a dynamic environment, with significant sequential growth in the data center segment, now representing 25% of the product mix.

• The company is leveraging its scalable NAND technology and integrated manufacturing capabilities to meet diverse customer needs across data center, edge, and consumer markets.

Business model transformation

• A new business model (NBM) is being implemented, shifting from transactional, quarterly pricing to multi-year agreements that provide predictability for both supply and demand.

• Five multi-year supply partnerships have been signed, covering over one-third of fiscal 2027 bit shipments, with the longest contract spanning five years and a total contracted value of $42 billion for the first three agreements.

• These agreements include financial guarantees and flexible pricing structures with floors and ceilings to manage volatility.

• The NBM is primarily focused on data center and edge markets, not consumer, and aims to reduce cyclicality and improve long-term economics.

Supply-demand outlook and growth strategy

• The team maintains conviction that the market will remain undersupplied through at least the end of 2027, supporting sustained growth.

• The company targets mid to high teens bit supply growth, balancing growth, economic returns, and reduced cyclicality.

• Customer engagement through NBMs is providing greater visibility into future demand and supporting strategic planning.