SanDisk Corporation (NASDAQ:SNDK) traded higher as traders focused on rising AI-driven memory demand and the company's expanding use of multi-year supply agreements to improve revenue visibility.

Long-Term Supply Deals Support Visibility

Following a better-than-expected fiscal third-quarter 2026, Sandisk disclosed five long-term customer agreements, including contracts extending up to five years.

The company's CFO said three of the deals imply minimum contractual revenue of about $42 billion, while the five agreements together include financial guarantees totaling more than $11 billion.

Analysts See Structural Upside

Evercore ISI analyst Amit Daryanani said Sandisk's results demonstrated strong fundamentals, including gross margins above 80%, and argued the company has greater structural margin upside than many peers.

He also highlighted growing hyperscaler engagements and financial commitments that could reduce cyclicality and support higher valuations.

Cramer Highlights AI Storage Demand

CNBC's Jim Cramer said companies including Sandisk, Micron Technology Inc. (NASDAQ: MU), Western Digital, and Seagate Technology Holdings Plc (NASDAQ:STX) are ...