SanDisk Corporation (SNDK) surged 11.9% to $1,740 on Friday after confirmation of its promotion to the S&P 100, effective September 21. The jump made SanDisk the top performer in the S&P 500 for the session and pushed its market capitalization to roughly $273 billion, with the stock now up about 500% year-to-date in 2026.
The rally follows a blowout quarter in which SanDisk reported revenue of $8.97 billion, up 372% year over year, with gross margin of 84.6%. Data-center revenue more than doubled sequentially to $2.98 billion, and management projected up to $10.8 billion in revenue for the coming quarter. SanDisk also lifted its remaining share-repurchase authorization to $15.5 billion, representing about 5.7% of its current market cap.
SanDisk is attempting to reduce exposure to the traditionally cyclical NAND memory market through new long-term business models. The company has signed multi-year supply agreements with eight data-center customers, including three US hyperscalers, with a minimum total contract value of $93.9 billion. These agreements include pricing floors and ceilings; CFO Luis Visoso said floor pricing supports gross margins of around 80%. The contracts are expected to cover 50% of bit shipments in fiscal 2027 and 67% in fiscal 2028, providing greater visibility into volumes and profitability.
The company’s manufacturing partnership with Kioxia Holdings has been extended at the Yokkaichi plant in Japan through December 2034. The two firms’ combined manufacturing footprint accounts for 33% of global wafer production, supporting capital efficiency and shared technology development.
On the AI front, SanDisk and SK hynix jointly established the high-bandwidth flash (HBF) standard, aimed at high-context AI inference workloads. HBF is designed to offer eight to 16 times higher memory capacity at a given bandwidth. SanDisk has completed the design of its first HBF chip and remains on track for a 2027 launch, with mass production in 2028. The technology has support from Alphabet, Meta Platforms and Tenstorrent, while Nvidia adoption remains pending. HBF contributions are not yet included in official projections, which target a mid-to-high-teens revenue compound annual growth rate from fiscal 2028 to fiscal 2030.
From a valuation perspective, SanDisk trades at a one-year forward EV/EBITDA multiple of 6.3 times, compared with a peer average of 4.1 times. Lynx Research has set a $2,450 price target for SanDisk and $1,325 for Micron, noting that extreme volatility seen in May and June has eased and institutional buying has become more deliberate.
Although these developments are specific to the semiconductor and AI memory sector rather than cryptocurrency markets, they underscore the scale of AI infrastructure demand currently shaping technology investment sentiment.
