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Can AI Data Center Expansion Drive Sandisk's SSD Demand in 2026?
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Key Takeaways
Sandisk is increasingly tied to AI data center expansion as enterprise SSDs become core infrastructure.
SNDK is engaged with five hyperscale customers, qualifying Stargate enterprise SSDs through 2026.
Sandisk's BiCS8 boosts density and power efficiency as data center demand outpaces supply.
Sandisk (SNDK - Free Report) enters 2026 increasingly leveraged to accelerating AI infrastructure investment and structural expansion in NAND storage demand. Solid-State Drives (SSD) have become indispensable to AI workloads, enabling low-latency data access and energy-efficient inference at scale. As AI models grow and deployment broadens across cloud platforms, enterprise SSDs shift from supporting components to core infrastructure, anchoring a more durable NAND demand profile.
Global investment in data centers and AI infrastructure is projected to exceed $1 trillion by 2030, driving sustained hyperscale capacity expansion. Storage intensity per workload continues to rise as AI architectures require larger datasets, higher redundancy and persistent caching layers. Cloud service providers expand infrastructure to support both model training and inference deployment, creating sustained exabyte demand growth that outpaces historical trends and extends qualification cycles across multiple technology generations.
Sandisk is positioned to capture this shift through targeted execution in enterprise storage. The company actively engages with five major hyperscale customers, with multiple qualifications underway for its Stargate enterprise SSD platform through 2026. BiCS8 technology increases bit density while improving power efficiency, critical as data center operators optimize the total cost of ownership for AI inference. As BiCS8 ramps toward majority production by fiscal year-end, product allocation across end markets supports a more favorable mix and margin profile.
The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is pegged at $2.62 billion, while fiscal 2026 revenues are pegged at $10.45 billion, up 42.07% year over year. As AI infrastructure spending accelerates through 2026 and storage intensity rises in tandem with compute, expanding data center demand materially drives Sandisk's enterprise SSD opportunity, indicating that AI data center buildouts are expected to materially drive the company's SSD demand in 2026.
SNDK Navigates Intensifying Competition
Sandisk competes against Dell Technologies (DELL - Free Report) and Micron Technology (MU - Free Report) in the enterprise storage market as AI-driven data center demand accelerates. Dell Technologies competes at the infrastructure layer, where Dell Technologies bundles enterprise SSDs within servers and storage platforms to capture AI deployments. Micron Technology competes more directly at the NAND and enterprise SSD level, with Micron Technology supplying high-density flash to hyperscalers as AI workloads lift storage intensity, positioning Micron Technology as a direct content-level rivals.
Sandisk shares have appreciated 506.1% in the trailing six-month period, outperforming the broader Zacks Computer and Technology sector’s return of 18.6%.
SNDK Stock Outperforms Sector
Image Source: Zacks Investment Research
The SNDK stock is trading at a forward 12-month price/sales of 3.39X compared with the Zacks Computer-Storage Devices’ 6.34X. Sandisk has a Value Score of F.
SNDK Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $12.59 per share, unchanged over the past 30 days. Sandisk reported earnings of $2.99 per share in fiscal 2025.
Image: Bigstock
Can AI Data Center Expansion Drive Sandisk's SSD Demand in 2026?
Key Takeaways
Sandisk (SNDK - Free Report) enters 2026 increasingly leveraged to accelerating AI infrastructure investment and structural expansion in NAND storage demand. Solid-State Drives (SSD) have become indispensable to AI workloads, enabling low-latency data access and energy-efficient inference at scale. As AI models grow and deployment broadens across cloud platforms, enterprise SSDs shift from supporting components to core infrastructure, anchoring a more durable NAND demand profile.
Global investment in data centers and AI infrastructure is projected to exceed $1 trillion by 2030, driving sustained hyperscale capacity expansion. Storage intensity per workload continues to rise as AI architectures require larger datasets, higher redundancy and persistent caching layers. Cloud service providers expand infrastructure to support both model training and inference deployment, creating sustained exabyte demand growth that outpaces historical trends and extends qualification cycles across multiple technology generations.
Sandisk is positioned to capture this shift through targeted execution in enterprise storage. The company actively engages with five major hyperscale customers, with multiple qualifications underway for its Stargate enterprise SSD platform through 2026. BiCS8 technology increases bit density while improving power efficiency, critical as data center operators optimize the total cost of ownership for AI inference. As BiCS8 ramps toward majority production by fiscal year-end, product allocation across end markets supports a more favorable mix and margin profile.
The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is pegged at $2.62 billion, while fiscal 2026 revenues are pegged at $10.45 billion, up 42.07% year over year. As AI infrastructure spending accelerates through 2026 and storage intensity rises in tandem with compute, expanding data center demand materially drives Sandisk's enterprise SSD opportunity, indicating that AI data center buildouts are expected to materially drive the company's SSD demand in 2026.
SNDK Navigates Intensifying Competition
Sandisk competes against Dell Technologies (DELL - Free Report) and Micron Technology (MU - Free Report) in the enterprise storage market as AI-driven data center demand accelerates. Dell Technologies competes at the infrastructure layer, where Dell Technologies bundles enterprise SSDs within servers and storage platforms to capture AI deployments. Micron Technology competes more directly at the NAND and enterprise SSD level, with Micron Technology supplying high-density flash to hyperscalers as AI workloads lift storage intensity, positioning Micron Technology as a direct content-level rivals.
SNDK’s Share Price Performance, Valuation & Estimates
Sandisk shares have appreciated 506.1% in the trailing six-month period, outperforming the broader Zacks Computer and Technology sector’s return of 18.6%.
SNDK Stock Outperforms Sector
Image Source: Zacks Investment Research
The SNDK stock is trading at a forward 12-month price/sales of 3.39X compared with the Zacks Computer-Storage Devices’ 6.34X. Sandisk has a Value Score of F.
SNDK Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $12.59 per share, unchanged over the past 30 days. Sandisk reported earnings of $2.99 per share in fiscal 2025.
Sandisk Corporation Price and Consensus
Sandisk Corporation price-consensus-chart | Sandisk Corporation Quote
Sandisk currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.