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SNDK · Forward model · Datacenter · Bull case

What has to happen in Datacenter

Model as of

This page changes Datacenter inside the complete SNDK model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

SNDK forward model
Horizon
Consolidated fair value $3,711.05 all other verticals held in this portfolio case
Final-quarter revenue $15.28B 59% of company revenue
Explicit segment contribution $105.27B EBITDA less segment capex, before corporate items

Allocation persists and the NBMs turn the cycle into an annuity. Management's position is that demand exceeds supply beyond calendar 2027, that eight NBM customers have committed roughly half of FY2027 bits and two-thirds of FY2028 bits, and that $16.5bn of customer financial guarantees and $5.0bn of third-party collateral sit behind those commitments. If that holds, price does not revert on any horizon this model covers and the FY2028-FY2030 framework is a floor. This case runs revenue 1.25% a quarter above the base path, holds four more points of margin and exits at 7.5x.

Datacenter

Basis quarter$2.98B
Final quarter$15.28B
Implied CAGR+39%
Final revenue mix59%

Enterprise and hyperscale SSD, and the reason the stock re-rated: 12% of Sandisk's bits in Q4 FY2025, 38% one year later, $2,977M of revenue in the basis quarter against $213M a year earlier. Almost all of the NBM contracting sits here and in Edge. The risk is not demand - management says NAND stays on allocation beyond calendar 2027 - it is that this line's revenue per gigabyte was set at a shortage price.

Last four quarters
2026 Q1 $269M Reported
2026 Q2 $440M Reported
2026 Q3 $1.47B Reported
2026 Q4 $2.98B Reported
Compute-focused TLC enterprise SSDQLC high-capacity AI data-lake SSD (Stargate platform)Contracted NBM supply to hyperscale customers
Bit index (2026 Q4 = 100) 100/qtr growing +6.5% per quarter Index, not exabytes: 2026 Q4 = 100. Sandisk discloses bit growth per end market, never a level.
Revenue per index point $30M drifting +14.0% per quarter Basis revenue $2,977M / 100 index points. Derived, not a dollars-per-gigabyte figure Sandisk published.
Datacenter

Latest: $15.28B (2031Q4E)

Period Value
2024Q3 $97M
2024Q4 $170M
2025Q1 $300M
2025Q2 $250M
2025Q3 $197M
2025Q4 $213M
2026Q1 $269M
2026Q2 $440M
2026Q3 $1.47B
2026Q4 $2.98B
2027Q1E $3.66B
2027Q2E $4.28B
2027Q3E $4.85B
2027Q4E $5.38B
2028Q1E $5.87B
2028Q2E $6.35B
2028Q3E $6.83B
2028Q4E $7.31B
2029Q1E $7.80B
2029Q2E $8.31B
2029Q3E $8.85B
2029Q4E $9.41B
2030Q1E $10.00B
2030Q2E $10.63B
2030Q3E $11.29B
2030Q4E $12.00B
2031Q1E $12.75B
2031Q2E $13.54B
2031Q3E $14.38B
2031Q4E $15.28B

Assumptions & reasoning

  • Units are an INDEX, not exabytes: the basis quarter is 100 and price per index point is that quarter's revenue divided by 100. Sandisk discloses bit GROWTH by end market and has never published an exabyte LEVEL, so a physical unit count here would be an invented disclosure.
  • FY2026 disclosure splits this line into its two terms: exabytes shipped up almost 120% and revenue per gigabyte up almost 150%. Both are growth rates from the 10-K; neither is a level, which is why the driver runs on an index.
  • Volume grows 6.5% a quarter, faster than the company's mid-teens sellable bit growth, because the disclosed allocation shift - 12% of bits to 38% in four quarters - has to keep coming out of Edge and Consumer.
  • Economics are company-level, not segment-level. Sandisk runs a single reportable operating segment and publishes one gross margin line, so 84.6% basis and 80.0% terminal are the company's own non-GAAP gross margins applied uniformly; operating expense sits once at the corporate line, never inside a vertical.
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