Sandisk: The Next NAND Downturn Could Prove Bulls Right

Data center revenue surged 61% sequentially to $4.8 billion, driving approximately 88% of Sandisk's quarterly revenue growth. Long-term NAND contracts cover roughly half of FY2027 bits and two-thirds of FY2028, reducing exposure to future pricing declines. Adjusted free cash flow reached $5.70 billion, although rising receivables and aggressive share repurchases warrant closer scrutiny.