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Sandisk pegs $41.6 billion to $42 billion backlog amid AI memory boom
The company said its enterprise AI storage capacity for 2026 is sold out under long term agreements, supporting multibillion dollar cash flows for the rest of the calendar year.
Sandisk Corporation, spun off from Western Digital in February 2025, is benefiting from an AI driven memory demand surge, even as investors debate valuation across the chip sector. Hyperscaler capital expenditure is expected to reach $750 billion this year, while Goldman Sachs forecasts $7.6 trillion in total AI infrastructure spending through 2031, pressuring NAND and DRAM supply as data center demand collides with chipmakers capacity limits, according to Yahoo Finance.
The outlet reports that Sandisk disclosed remaining performance obligations and contracted backlog of between $41.6 billion and $42 billion. Management also said its 2026 enterprise AI storage capacity is sold out under long term agreements, which it said helps lock in multibillion dollar cash flows for the rest of the calendar year.
On results, Sandisk posted fiscal Q3 2026 revenue of $5.95 billion, up 97% sequentially and 251% year over year, with datacenter revenue up 645% year over year. The company expects continued sequential acceleration in fiscal Q4 2026, targeting total revenue between $7.75 billion and $8.25 billion and non GAAP EPS of $30 to $33, while gross margins rise to nearly 80%.
Still, Yahoo Finance notes Sandisk shares pulled back in mid July, falling 8% to 15% across several sessions, contributing to a 39% drop from late June record highs as the Philadelphia Semiconductor Index fell more than 20%. Analysts cited by the outlet attributed the selloff to an industry wide valuation adjustment rather than a structural decline in memory.