SanDisk at Citi’s 2026 Global TMT Conference: betting on ai demand

On September 8, 2026, SanDisk showcased its AI and data center capabilities at Citi's Global TMT Conference, while acknowledging the need for disciplined supply and steady execution in the memory market. Data center revenue accounted for 38% of the company's total business, reaching $3 billion in the latest quarter. Free cash flow for the same period was $5 billion, with $4.5 billion returned to shareholders through buybacks.

SanDisk is investing heavily in long-term agreements (NBMs) and aims to have 50% of its business come from NBMs by the end of fiscal 2028. Gross margins at NBMs are around 80%. The company is focusing on BiCS8, BiCS10, BiCS11 memory efforts, and a new HBF (High Bandwidth Memory) effort intended for release in 2027. Hyperscaler customers are increasingly prioritizing energy efficiency, bandwidth, and density.

SanDisk has made significant strides in wafer productivity and wafer utilization, with no additional wafer capacity required for projected growth.

Despite competition from companies like YMTC, SanDisk maintains a strong position in the data center market and edge business. Management highlighted the company's technology transitions and capital efficiency as key differentiators. Analysts have revised their earnings estimates upward, reflecting confidence in SanDisk's long-term story.