Sandisk forecasts upbeat quarterly revenue on AI-driven demand

In an interview with Reuters, CEO David Goeckeler said the company has shifted its sales toward long-term, rather than quarterly, purchase agreements. Sandisk said the median duration of those agreements is now four years.

The company has eight agreements in place with six customers worth at least $93.9 billion. In its fiscal year ending in July 2027, half of its production will be sold under those deals, and in fiscal 2028, two-thirds of Sandisk's output will be sold under such agreements.

"That's light years ahead of where we were just three quarters ago," Goeckeler said.

Sandisk forecast quarterly revenue above estimates on Wednesday, banking on rising demand for its memory chips used in AI data centers.

Shares of the Milpitas, California-based company fell nearly 8% in extended trading, after the midpoint of its current quarter profit forecast beat LSEG estimates but fell below estimates from other data providers. The decline also follows a nearly 470% rise in its share price this year.