Sandisk Locks In $93.9 Billion in Long-Term Storage Deals

Sandisk has signed long-term contracts worth $93.9 billion with six clients, positioning the storage maker as an unexpected beneficiary of the artificial-intelligence boom, according to TheStreet, citing Reuters.

Rather than building the processors that power AI models, Sandisk supplies storage that those systems increasingly require as data centers expand and workloads shift toward inference and agentic AI applications. The company reported fiscal fourth-quarter sales of $8.97 billion, above the $8.39 billion analysts expected, with data-center revenue more than quadrupling from the prior quarter to $2.98 billion.

The eight long-term contracts average four years, and Sandisk expects half of its output to be under such agreements in fiscal 2027 and two-thirds by fiscal 2028. Sandisk shares closed at $1,791.82 on Sept. 18, up 11% that day.

TheStreet notes the same AI boom fueling Sandisk's growth is also tightening NAND supplies and drawing new competitors, forcing memory makers to make difficult decisions about capacity allocation.