Meta Platforms Signs Long-Term Supply Agreement with Sandisk
Meta Platforms (NASDAQ: META) has entered into a long-term supply agreement with Sandisk (NASDAQ: SNDK) to procure NAND flash storage chips for its AI data centers, as revealed in an internal memo accessed by Reuters. The agreement comes amid a global memory chip shortage, with industry experts estimating that demand will exceed supply by 20% over the next four to five years, prompting tech giants to secure long-term contracts.
Meta plans to increase its AI compute capacity to 14 gigawatts (GW) by next year, requiring 25 exabytes of flash storage to support this upgrade. Sandisk, being the fifth-largest supplier of NAND flash memory, is poised to benefit from this partnership. The company recently announced multiple long-term agreements, projecting at least $42 billion in revenue from recent contracts, significantly higher than its trailing-twelve-month revenue of $13.2 billion.
Sandisk’s stock has surged 538% in 2026, and with the additional contracts expected, analysts are optimistic about further growth in the company’s revenue amid the ongoing chip shortage.
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