SNDKSandisk Corporation

“Data center is a clear example of this strategy in action, with revenue growing 233% sequentially. This milestone reflects years of preparation and our deliberate shift toward what is now the most strategic and fastest-growing end market.”

“we would raise our calendar year '26 data center growth number to the mid-70s from the 60s just three months ago, which is up from the 40s three months before that and the 20s three months before that. Very strong growth in data center.”

“This reinforces the business model conversation as our customers understand the significance of NAND—this is a foundation for striking two-, three-, or five-year deals that are very substantial in demand. It is an extremely dynamic situation. Our customers are responding very positively to our products. They are willing to commit years of purchasing with a financial model that is very attractive for us and gives them guaranteed supply.”

“As AI models scale from billions to trillions of parameters, and deployments advance from simple inference to deep reasoning in increasingly autonomous agentic systems, NAND has become a critical component of the underlying infrastructure. Inference optimizations such as KV cache, along with workloads like RAG, require substantial high-performance, low-latency flash to deliver real-time responsiveness and quality of user experience.”

“We have advanced our understanding a lot over the last quarter or two since it became a major part of the conversation. When you drill into that opportunity and try to size it, it gets complicated quickly—number of concurrent sessions, average input tokens, cache hit ratios, storage durations, and more. We need to stay very close to our customers because they will have the detail on the infrastructure they are building.”

“High bandwidth flash is not a substitute for an enterprise SSD; it is a way to bring a lot more to inference in a different way. You can see it in our numbers—enormous pull on the portfolio of high-performance enterprise SSDs as these architectures get deployed and inference scales. NAND is the most scalable semiconductor technology in the world and is now a critical component of that architecture.”

“These workloads expand the amount of data that now needs to be stored on low-latency flash well beyond the model itself, as systems must retain context, intermediate data, and large external data sets. As a result, NAND flash is emerging as the only economically viable solution to deliver the capacity, performance, and efficiency required to keep models accessible for real-time inference at scale.”

“Our fiscal third quarter revenue was enhanced by strong demand for our TLC-based enterprise SSD portfolio, which powers performance-intensive compute workloads where speed and latency are paramount. Looking ahead to the fiscal fourth quarter, we expect to begin shipping our QLC Stargate solutions for revenue, adding another layer of revenue growth.”

“There is a lot of demand for TLC in enterprise SSDs given the inference architectures and the importance of KV cache, which can scale dramatically based on use case assumptions. That said, we expect our QLC products to do very well.”

“We will still see content per device increase this year—phones up, PCs flat—and we will see both inflect up next year while units are flat to up slightly.”

“While we have made substantial progress, there are significant growth opportunities ahead driven by the fundamental shift in underlying infrastructure requirements of artificial intelligence. We are witnessing extraordinary growth not just in model size, but in resulting token generation, the duration and complexity of model runs, and the increasing importance of context.”

“It could be a significant amount. You have known for a long time we value a balanced portfolio. We want to mix in the way that gets the best financial return for us, and that changes quarter over quarter. The key point is we are in a position where we can mix into data center in a way that we have never been able to do before.”

“In edge, we are seeing a continued shift toward premium devices across both PC and smartphone markets. These platforms are increasingly incorporating on-device capabilities, which are driving higher storage requirements and greater demand for high-performance solutions.”

“Data center has become our fastest-growing market, and the workloads driving that demand—including inference, reasoning, and agentic systems—represent a structural and durable shift in how the world's most consequential technology is built and deployed.”

“Understanding what that means for demand on our product is driving demand signals years into the future for us, allowing us to align our business model around that demand.”

“In February, we unveiled our next-generation portable SSD portfolio designed to support faster, more demanding workflows and AI-enabled content creation.”