$Sandisk(SNDK.US)

Post 3 of Episode 24

Context: What is becoming increasingly interesting to me about SanDisk is that the story is no longer simply “NAND prices are going up.” Fiscal 2026 Datacenter revenue grew 437%, with exabytes sold nearly doubling and revenue per gigabyte rising sharply. At the same time, SanDisk has now signed 10 New Business Model agreements, designed to deepen relationships with strategic customers and potentially make demand and returns more durable across the cycle.

My trade: That changes how I think about SNDK. Historically, NAND has been a brutally cyclical commodity business — great pricing eventually encourages too much supply. If SanDisk can combine disciplined capacity, higher-value enterprise SSDs and longer-term customer arrangements, there is a possibility that the next cycle looks structurally better than the ones that came before. The numbers are already reflecting the shift: Q4 revenue reached $8.97 billion, up 51% sequentially, with Datacenter revenue more than doubling quarter-on-quarter.

Takeaway: The most interesting part of the SanDisk story may no longer be simply that NAND is scarce. It is whether SanDisk can turn a historically cyclical business into a more disciplined, higher-value and increasingly predictable one. If that happens, the market may eventually value SNDK very differently from the memory company it used to be.

@Captain's Treasure