SanDisk Expected to Guide for Over 20% Annual Revenue Growth, Storage Cycle Shifts with LTAs, HBM, eSSD

According to Chaoxiang Research, J.P. Morgan’s expert commentary on August 12 noted that SanDisk will hold an Investor Day on August 13, with market expectations that management will provide guidance for annual revenue growth exceeding 20%, flat gross margins, and operating leverage driving EPS growth of 20% to 30%, alongside significantly reduced cyclicality. Investor interactions suggest the market anticipates an annual buyback rate of approximately 10%. To date, SanDisk has signed agreements with eight customers and ten long-term contracts covering over 50% of its fiscal year 2027 wafer capacity, with minimum revenue commitments totaling $93.9 billion. The HBM market is transitioning from standardization to customization; Micron indicated that HBM4E will usher in the era of “custom SKUs,” and HBM’s displacement of traditional DRAM capacity has worsened from 3:1 to approximately 4:1. Enterprise SSDs now account for 48% of global NAND shipments, up from 26% a year ago, with industry revenue quintupling year-over-year. J.P. Morgan believes the combination of LTAs, HBM customization, and evolving eSSD demand structures is shifting memory chips from a commodity cycle to a structural cycle, potentially requiring adjustments to valuation methodologies. Quantinuum’s commercialization of quantum computing is accelerating, with CY27 revenue guidance exceeding $60 million (+34%); J.P. Morgan maintains its $97 price target and Overweight rating. Supermicro’s F4Q26 gross margin of 17.6% exceeded guidance, with orders exceeding 6