Sandisk Corporation: Supply/Demand balance remains tight, pricing strong; PO to $2100

研报英文原文证据摘录

Sandisk Corporation: Supply/Demand balance remains tight, pricing strong; PO to $2100

Accessible version

Sandisk Corporation

Supply/Demand balance remains tight,

pricing strong; PO to $2100

Reiterate Rating: BUY | PO: 2,100.00 USD | Price: 1,559.32 USD

New Business Models win-win for the industry 08 June 2026

Ivan Donaldson and Jasmine Nouri from SanDisk Investor Relations attended our 2026 Equity

Global Technology Conference in San Francisco. The company did not provide any

update to its guidance. Investor questions focused on the multi-year supply partnerships

Key Changesbetween SanDisk and its customers, referred to as new business models (NBMs). The

NBMs include fixed pricing for an initial period, followed by variable pricing over the rest (US$) Previous Current

of the contract. The contracts are designed so that margins remain within guidance Price Obj. 1,550.00 2,100.00

range, even if pricing is at the floor (and the floor remains unchanged during the 2026E Rev (m) 19,614.4 20,280.9

contract). We see the NBMs as win-win as they lock in committed supply for customers, 2027E Rev (m) 37,675.7 44,398.1

and committed financials for SanDisk. Reiterate Buy on valuation, beneficial joint 2028E Rev (m) 40,683.0 51,100.0

venture partnership, share gains, and long-term potential for industry consolidation. 2026E EPS 65.13 68.56

2027E EPS 153.59 187.65

Pricing trends remain strong in the near term 2028E EPS 168.89 222.06

So far, SanDisk has signed up over a third of its F27 revenue via NBMs, which means

that over 60% of its NAND supply is still available for customers to purchase (albeit at Wamsi Mohan

higher prices vs. a year ago). Over time we see a path to a higher proportion of supply Research Analyst BofAS

under these NBMs thereby driving more stability in earnings.