Key Takeaways
- Meta has reportedly committed to a multi-year NAND flash memory supply agreement with SanDisk, according to Reuters
- Shares of SanDisk rallied more than 10% on Thursday following the report
- An internal Meta document reveals plans for 7 gigawatts of computing infrastructure in 2026, expanding to 14 gigawatts by 2027
- Official confirmation and financial details of the agreement have not been disclosed by either company
- SanDisk had previously announced approximately $42 billion in minimum guaranteed revenue from long-term supply contracts
Shares of SanDisk (SNDK) rocketed over 10% during Thursday trading after Reuters published a report indicating Meta Platforms has entered into a long-term contract designating SanDisk as its flash storage provider for an ambitious AI infrastructure buildout.
According to the Reuters story, which referenced a confidential Meta internal document, SNDK shares climbed from approximately $1,727 to peak at $1,907.79 during the trading day. As of this writing, the stock was changing hands at $1,904.52, representing a gain of roughly 10.27%.
SanDisk isn’t Meta’s sole supplier in this expansion. The same internal memo identifies Samsung Electronics as the DRAM provider and Sumitomo Electric for fiber-optic infrastructure. However, SanDisk stands out as the only publicly traded U.S. company among the three, positioning it as the most accessible investment opportunity for American traders.
The news created ripple effects across related technology stocks. Broadcom (AVGO) — a key partner in developing Meta’s proprietary “Iris” AI processor — advanced 3.74%. Taiwan Semiconductor Manufacturing (TSM), tasked with fabricating the chip, increased 1.32%. Meta’s own shares (META) posted modest gains between 1.51% and 1.59%.
When contacted by Reuters, neither Meta nor SanDisk provided official statements regarding the agreement. SanDisk representatives declined commentary, while Meta did not issue a response.
Meta’s Aggressive Infrastructure Strategy
The leaked internal communication reveals an aggressive timeline. Meta intends to bring seven gigawatts of computational capacity online during 2026, followed by a doubling to 14 gigawatts throughout 2027.
At the heart of this expansion lies “Iris,” Meta’s fourth-generation AI chip under its MTIA initiative — a strategic program aimed at decreasing dependence on processors from Nvidia and AMD. According to the memo, Iris has successfully navigated bug testing without significant complications and remains scheduled for production launch in September 2026.
Meta’s projected AI infrastructure investment for this year could reach $145 billion. Notably, this expenditure surpasses the company’s anticipated $136.6 billion in operating cash flow for 2026, based on projections from S&P Global Market Intelligence.
SanDisk’s Remarkable Market Performance
SanDisk emerged as an independent entity from Western Digital this past February 2025, debuting at approximately $38.50 per share. Since then, the stock has exploded upward by more than 800% year-to-date, claiming the title of the S&P 500’s strongest performer during the first half of 2026.
The company’s latest quarterly results showcased this explosive growth trajectory. Third-quarter fiscal revenue nearly doubled, reaching $5.95 billion. Non-GAAP gross margin expanded to 78.4%, benefiting from constrained supply dynamics within the NAND flash memory marketplace.
Prior to today’s Meta revelation, SanDisk had already announced long-term supply commitments representing approximately $42 billion in guaranteed minimum revenue.
The broader memory sector 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 extraordinary performance for the NAND flash memory manufacturer, which now commands a market capitalization of $256 billion.
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