SanDisk Shares Surge on Report of Multi-Year Flash Storage Deal with Meta

Shares of SanDisk (NASDAQ: SNDK) surged in early trading Thursday after a report revealed the company has secured a long-term, multi-year supply agreement for flash storage with Meta Platforms. The news, first reported by Reuters citing an internal Meta memo, sent SanDisk's stock up 6.82% to $1,844.96.

Meta's AI Infrastructure Blueprint

The agreement is a component of Meta's ambitious plan to significantly expand its AI computing infrastructure. According to the memo, Meta plans to deploy seven gigawatts of computing capacity in 2026 and double that figure to 14 gigawatts by 2027. The build-out will also utilize memory chips from Samsung Electronics and fiber-optic equipment from Sumitomo Electric.

Central to this strategy is "Iris," Meta's next-generation in-house AI chip, which is reportedly scheduled to enter production in September 2026. This initiative is part of a broader effort by the company to reduce its long-term dependence on hardware from external vendors like Nvidia and AMD. Neither Meta nor SanDisk has officially commented on the terms of the supply agreement.

Divergent Market Reactions

The news triggered a rally across the memory and storage sector, which had experienced a selloff earlier in the week. Other major players also saw gains, with Micron up approximately 8%, and both Western Digital and Seagate trading higher by about 7%. The disclosure directly benefits suppliers facing immense demand for AI-related components.

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In contrast, shares of Meta Platforms (NASDAQ: META) traded down 2.18% to $589.97. The decline reflects investor concerns over the staggering costs associated with the infrastructure push. Meta has indicated it could spend up to $145 billion on AI infrastructure in 2026 alone, a significant portion of the more than $700 billion collectively projected for Big Tech.

Context for SanDisk's Performance

The reported deal reinforces SanDisk's already strong market position. The company, which was spun out of Western Digital in February 2025, has seen its stock rise more than 800% year-to-date, making it a top performer in the S&P 500.

In its most recent earnings report, SanDisk had already disclosed multi-year supply agreements representing approximately $42 billion in minimum contracted revenue. Its fiscal third-quarter revenue nearly doubled to $5.95 billion, with non-GAAP gross margin surging to 78.4%, underscoring the acute shortage and high prices for NAND flash storage.