[News] SanDisk: NAND Undersupply Extends Beyond 2026 as Customers Seek 2027 Supply

As hyperscalers shift from AI training to inference workloads, the need for high-capacity memory is surging. While HBM benefits, NAND is also in high demand. SanDisk reports an undersupplied NAND market through the end of 2026, with customer conversations now pointing to tight supply extending into 2027, according to Yahoo! Finance and IT Home.

According to the Yahoo! Finance earnings call transcript, CEO David Goeckeler said the undersupplied NAND market is driven by long-term demand trends, past capital investments, and industry-wide node transitions.

Notably, SanDisk remains bullish on the long-term data center market, highlighting a major NAND shift. According to the company’s remarks from the transcript, 2026 will likely mark the first time data centers overtake mobile as the largest NAND segment, driven by faster growth and a more diverse customer base.

Meanwhile, per Yahoo! Finance, SanDisk’s fabs are operating at full capacity, with production maxed out to replenish sharply reduced inventories.

SanDisk also brings up its progress on high-bandwidth flash (HBF), noting that with data center and edge clients seeking faster AI inference performance, attention is rising around the solution. Following the technical advisory board and ecosystem collaboration with SK hynix announced last quarter, the company is proactively working with prospective customers on inference-focused applications across both segments.

Strong Guidance

As Investing.com highlights, for the fiscal second quarter 2026, SanDisk surprised with guidance well above expectations: revenue projected at $2.55–$2.65B versus the $2.32B consensus, and adjusted EPS of $3.00–$3.40, far exceeding the $1.79 forecast.

SanDisk, as per its press release, reported Q1F26 revenue of $2.31B, up 21% sequentially and above guidance, with GAAP net income of $112M ($0.75 per share) and Non-GAAP EPS of $1.22.

The company states that its datacenter revenue rose 26% sequentially, with two hyperscalers in qualification, a third and a top storage OEM planned for 2026, and ongoing engagement with five major hyperscale customers. BiCS8 technology accounted for 15% of total bits shipped, and is expected to dominate production by the end of fiscal 2026.

Read more

• [News] SanDisk Reportedly Sees NAND Shortage Until 2026; Ongoing Price Opportunities Across Board
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(Photo credit: SanDisk’s LinkedIn)