Key Highlights
- Meta has reportedly committed to a multi-year NAND flash memory supply contract with SanDisk, according to Reuters
- SNDK shares climbed more than 10% during Thursday’s trading session following the report
- An internal Meta document reveals the company intends to roll out 7 gigawatts of compute infrastructure in 2026, expanding to 14 gigawatts by 2027
- Official confirmation and deal specifics remain undisclosed by both Meta and SanDisk
- The flash memory manufacturer previously reported approximately $42 billion in guaranteed revenue from existing long-term contracts
Shares of SanDisk (SNDK) rocketed upward by more than 10% Thursday following a Reuters report that Meta Platforms has entered into a long-term supply agreement with the company for flash storage solutions, tied to Meta’s aggressive artificial intelligence infrastructure buildout.
According to the report, which referenced a confidential Meta internal communication, SNDK shares climbed from approximately $1,727 to reach an intraday peak of $1,907.79. At press time, the stock was trading at $1,904.52, representing a gain of roughly 10.27%.
SanDisk isn’t the sole supplier featured in Meta’s procurement strategy. The memo reportedly identifies Samsung Electronics as a DRAM provider and Sumitomo Electric for fiber-optic infrastructure. However, SanDisk stands out as the only company among these suppliers with shares traded on U.S. exchanges, positioning it as the most accessible option for American investors.
The positive sentiment extended beyond SanDisk to related technology stocks. Broadcom (AVGO) — collaborating with Meta on the development of its proprietary “Iris” AI processor — advanced 3.74%. Taiwan Semiconductor Manufacturing (TSM), designated to manufacture the custom chip, increased 1.32%. Meta’s own stock (META) also edged higher by approximately 1.51-1.59%.
When approached by Reuters for verification, SanDisk declined to provide commentary, while Meta did not issue a response.
Meta’s Aggressive Computing Expansion
The leaked internal communication reveals Meta’s expansive vision for infrastructure development. The social media giant is targeting the deployment of seven gigawatts of computing power throughout 2026, with plans to double that capacity to 14 gigawatts during 2027.
At the heart of this expansion lies “Iris,” Meta’s upcoming AI chip architecture. Representing the fourth iteration of the company’s MTIA initiative — a strategic program designed to decrease dependence on Nvidia and AMD processors — Iris is allegedly proceeding toward production launch in September 2026 following successful debugging phases without significant complications.
Meta’s projected capital expenditure for AI infrastructure could reach $145 billion this year alone. Notably, this investment exceeds the $136.6 billion in operating cash flow the company is forecasted to generate in 2026, based on S&P Global Market Intelligence projections.
SanDisk’s Remarkable Market Performance
SanDisk became an independent entity following its separation from Western Digital in February 2025, initially priced around $38.50 per share. Since then, the stock has skyrocketed more than 800% year-to-date, establishing it as the strongest performer within the S&P 500 index during the first half of 2026.
The company’s latest quarterly results underscore this exceptional trajectory. Third-quarter fiscal revenue nearly doubled, reaching $5.95 billion. Non-GAAP gross profit margin touched 78.4%, benefiting from constrained supply dynamics in the NAND flash marketplace.
Prior to Thursday’s Meta-related news, SanDisk had already announced long-term supply commitments worth approximately $42 billion in guaranteed minimum revenue.
Other memory sector companies experienced sympathetic gains. Micron (MU) climbed nearly 8%, Western Digital (WDC) advanced roughly 6.9%, and Seagate (STX) rose close to 6%.
Thursday’s surge continues an already unprecedented rally for the NAND flash memory producer, which now commands a market capitalization of $256 billion.
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