Sandisk Shares Rise 7.9% on Nvidia Custom Memory Manufacturing Report
Key Facts
Sandisk shares rose 7.9% during trading on October 19, 2026, alongside reports of manufacturing arrangements for Nvidia's custom memory for artificial intelligence infrastructure. The Motley Fool said the stock was holding those gains at 11:24 a.m. Eastern time. Reuters, citing the Seoul Economic Daily, reported that Samsung would use Taiwan Semiconductor Manufacturing Co.'s 3-nanometer process to produce base dies for the memory. According to the same report, Nvidia asked Samsung, SK Hynix and Micron to use the Taiwanese company's process for its custom memory base dies. The developments come as Sandisk works with SK Hynix on a separate high-bandwidth flash memory project aimed at augmenting memory used in AI inference workloads.
Nvidia's technology, called "NVHBM," integrates a custom memory controller into the high-bandwidth memory base die. The design replaces the placement of the controller on the processor die, according to the company's explanation of the technology. Nvidia says the design delivers up to a 30% increase in memory bandwidth compared with standard "HBM4E" memory. It also says it reduces memory power consumption by 15% compared with the same standard generation, a comparison specific to memory power consumption. The company named Amazon's Annapurna Labs as its first collaborator on the technology as part of its custom memory development.
Sandisk's project with SK Hynix is called high-bandwidth flash memory, and the companies announced the release of its technical specification through the Open Compute Project. Google and Tenstorrent joined the consortium standardizing the technology during the specification's development, according to Sandisk's announcement. SK Hynix described its position in the memory architecture, saying: "High-bandwidth flash memory technology is a new memory tier between high-bandwidth memory and solid-state drives." The specifications cover capacities of up to 512 gigabytes, according to the South Korean company. Sandisk aims to augment high-bandwidth memory for inference workloads with comparable bandwidth and up to 8 times the capacity at a comparable cost, according to its description of the technical goals.
The stock's moves follow a surge in Sandisk's business, with revenue reaching about $8,965 million in the fourth fiscal quarter of 2026, according to its filing with the U.S. Securities and Exchange Commission. The company had reported revenue of $5,950 million in the third fiscal quarter of the same year. Revenue growth between the quarters was therefore 51%, according to the comparison in the filing. In the fourth fiscal quarter of 2025, Sandisk's revenue was $1,901 million. On that annual comparison, the company recorded a 372% increase in revenue in the fourth fiscal quarter of 2026.
In its business breakdown, Sandisk reported data center revenue of $2,977 million in the fourth fiscal quarter of 2026, according to the same earnings filing. The company compared that figure with data center revenue of $1,467 million in the third fiscal quarter. The business's quarterly growth rate reached 103%, exceeding the company's overall revenue growth rate over the same period. For total revenue, Sandisk attributed about one-third of the quarterly increase to higher volumes, according to its earnings statement. It attributed about two-thirds of that increase to higher prices, making improved pricing the largest contributor to quarterly revenue growth under the company's breakdown.
For the first fiscal quarter of 2027, Sandisk expects revenue in a range starting at $10,300 million, according to the guidance in its earnings filing. The upper end of the range is $10,800 million for the same fiscal quarter. The forecast range exceeds fourth-fiscal-quarter 2026 revenue of $8,965 million, which formed the company's previous quarterly comparison base. Sandisk scheduled its first-fiscal-quarter 2027 earnings call for Thursday, October 29, 2026, according to its investor announcement. The call is scheduled to begin at 1:30 p.m. Pacific time.