Reports on October 18 say SanDisk is shifting to a business model intended to reduce the memory industry’s historical cyclicality. The company is reportedly entering long-term agreements with customers that commit them to set volumes and defined pricing. The deals could make future earnings more predictable and stable.
SanDisk has dominated the S&P 500 in 2026, with its stock surging nearly 500% this year. Strong demand for its NAND memory chips, which are used in AI data centers, has helped drive the rally. Revenue grew 372% in the last reported quarter.
More recently, the stock fell 18% amid broader sector concerns and questions about future profitability. The decline lasted six consecutive days. The new contract-based model is intended to secure future revenue and give investors clearer visibility.