SanDisk says customers underestimate NAND capacity needed for AI infrastructure

Oct 30

1. 14:00

   Semiconductor Industry Observer

   SanDisk's FY2027 Q1 revenue reaches $11.031 billion, AI inference drives NAND demand

   SanDisk announced its fiscal 2027 first-quarter earnings, with quarterly revenue of $11.031 billion, up 378% year-over-year, and a non-GAAP gross margin of 85.1%. Data center business revenue was $4.802 billion, up 1682% year-over-year, with its share of total revenue rising from about 11.7% in the same period last year to about 43.5%. SanDisk said customer long-term demand signals have extended beyond fiscal 2030, about 50% of NAND supply in fiscal 2027 has been incorporated into the new NBM business model, with coverage of about two-thirds in fiscal 2028; the first HBF memory die has completed tape-out, with plans to deliver the first samples to customers in 2027.

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2. 10:58

   Phoenix Technology

   SanDisk says AI inference is driving up NAND demand, with long-term orders booked through 2030

   On its fiscal 2027 first-quarter earnings call, SanDisk said AI inference is reshaping the NAND flash supply and demand landscape, that customers have underestimated the NAND capacity needed to run AI infrastructure, and that its new business model order pipeline extends to 2030 and even further out. About 50% of bit shipments in fiscal 2027 have already been locked in under NBM agreements, and that is expected to rise to about two-thirds in fiscal 2028. SanDisk also announced that the first high-bandwidth flash (HBF) memory die has completed tape-out and entered the manufacturing stage, offering read bandwidth approaching HBM with NAND-class capacity for AI inference, with first samples planned for delivery in the next calendar year.

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3. 09:26

   Wall Street Insights

   SanDisk Earnings Call: Customers Underestimate NAND Demand, NBM Long-Term Orders Booked Through 2030

   SanDisk reported revenue of $11 billion for the first quarter of fiscal 2027, up 378% year over year, including $4.8 billion in data center revenue, up 61% quarter over quarter. Management said customers have underestimated the NAND capacity needed to run AI infrastructure; about 50% of 2027 supply and roughly two-thirds of 2028 supply have already been booked under NBM long-term orders, with supply visibility extending to 2030 and even further out. The first HBF memory chip has completed tape-out, with the first samples planned for delivery to customers next year.

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