Key Highlights
- Meta has reportedly entered a multi-year NAND flash memory supply agreement with SanDisk
- Shares of SanDisk rallied more than 10% Thursday following the Reuters report
- Internal Meta documents reveal plans for 7 gigawatts of computing infrastructure in 2026, expanding to 14 gigawatts by 2027
- Official confirmation and financial details remain undisclosed by both companies
- SanDisk has previously announced approximately $42 billion in guaranteed revenue from long-term supply contracts
Shares of SanDisk (SNDK) experienced a significant rally exceeding 10% Thursday following a Reuters report indicating that Meta Platforms has selected the company as its flash storage provider through a multi-year agreement tied to aggressive AI infrastructure development.
According to the report, which references a confidential Meta internal communication, SNDK shares climbed from approximately $1,727 to peak at $1,907.79 during Thursday trading. As of press time, the stock was up roughly 10.27%, trading at $1,904.52.
SanDisk isn’t the sole supplier mentioned in Meta’s expansion blueprint. The internal document also identifies Samsung Electronics for DRAM components and Sumitomo Electric for fiber-optic infrastructure. However, SanDisk remains the only publicly traded U.S. entity among the three, positioning it as the most accessible investment opportunity for domestic traders.
The news rippled across related semiconductor stocks. Broadcom (AVGO) — reportedly collaborating with Meta on the development of its proprietary “Iris” AI processor — gained 3.74%. Taiwan Semiconductor Manufacturing (TSM), designated to produce the chip, advanced 1.32%. Meta (META) itself posted modest gains between 1.51% and 1.59%.
Both Meta and SanDisk have refrained from official statements. SanDisk declined Reuters’ request for comment, while Meta provided no response.
Meta’s Aggressive Computing Expansion
The leaked internal communication reveals ambitious targets. Meta intends to roll out seven gigawatts of computing infrastructure during 2026, with plans to double that capacity to 14 gigawatts the following year.
At the heart of this expansion sits “Iris,” Meta’s fourth-generation AI chip under its MTIA initiative — a strategic program designed to decrease dependence on Nvidia and AMD silicon. According to reports, Iris has successfully navigated bug testing without significant complications and remains on schedule for production launch in September 2026.
Meta’s anticipated AI infrastructure spending for this year alone could reach $145 billion. That expenditure notably surpasses the $136.6 billion in operating cash flow the company is projected to generate in 2026, based on S&P Global Market Intelligence estimates.
SanDisk’s Remarkable Market Performance
SanDisk began independent trading following its February 2025 separation from Western Digital at approximately $38.50 per share. Since then, the stock has skyrocketed over 800% year-to-date, establishing it as the S&P 500’s strongest performer during the first half of 2026.
Recent financial results underscore this exceptional trajectory. The company’s fiscal third-quarter revenue nearly doubled, reaching $5.95 billion. Non-GAAP gross margins climbed to 78.4%, benefiting from constrained supply conditions in the NAND flash marketplace.
Prior to Thursday’s Meta partnership report, SanDisk had already announced long-term supply commitments representing approximately $42 billion in guaranteed minimum revenue.
The broader memory sector participated in Thursday’s gains. Micron (MU) climbed nearly 8%, Western Digital (WDC) advanced approximately 6.9%, and Seagate (STX) rose close to 6%.
Thursday’s surge continues an already extraordinary run for the NAND flash manufacturer, which now commands a market capitalization of $256 billion.
