SanDisk FY Conference Summary Company Overview - Company: SanDisk (NasdaqGS: SNDK) - Event: Barclays Global Tech Conference - Date: December 10, 2025 Key Industry Insights - Market Dynamics: The NAND market is experiencing a significant restructuring post-2023 downturn, with a shift from a focus on price to a focus on supply. Demand is currently prioritized over pricing, indicating a dynamic market environment [6][10][11]. - Data Center Growth: The data center market is projected to become the largest consumer of NAND by 2026, surpassing mobile demand, which has been the largest for the past 15 years. This shift is expected to drive substantial growth in NAND consumption [12][18][19]. - Long-Term Agreements (LTAs): There is an increasing interest from major customers in securing long-term agreements to ensure supply stability, reflecting the structural importance of NAND in their business models [25][27]. Financial Performance and Projections - Gross Margin Outlook: SanDisk aims for a through-cycle gross margin of 35%, but acknowledges the need to exceed this target to deliver returns for investors. The company has experienced three consecutive quarters below this margin [10][13]. - Capital Investment Strategy: The company is committed to making long-term capital investments in fabs and R&D, with a focus on sustainable growth rather than short-term gains. The industry is expected to grow at a mid-teens percentage rate, with SanDisk planning to align its capacity with this growth [17][26][29]. Technology and Product Development - BiCS8 Transition: SanDisk is on track with the transition to BiCS8 technology, which is expected to constitute 40-50% of its portfolio by the end of the fiscal year. This technology is crucial for maintaining competitive advantage in the NAND market [34][37]. - HBF Technology: The company is developing HBF technology, which aims to address the growing demand for higher bandwidth in AI applications. The first memory die is expected to be available in late 2026, with a controller following in early 2027 [38][42][43]. Market Challenges and Considerations - Supply Constraints: There are concerns about potential supply limitations for PCs and smartphones due to the prioritization of data center demands. SanDisk is committed to maintaining a balanced approach across its three key markets: consumer, PC, and data center [32][33]. - Industry Evolution: The NAND market is undergoing profound changes, with new demand drivers emerging. The company is focused on understanding these dynamics and adapting its strategies accordingly [24][44]. Conclusion - SanDisk is navigating a transformative period in the NAND industry, characterized by shifting demand dynamics, a focus on long-term supply agreements, and significant technological advancements. The company remains committed to prudent capital management while positioning itself for future growth in a rapidly evolving market landscape [44].
Sandisk (NasdaqGS:SNDK) FY Conference Transcript