**[SanDisk Elaborates on AI Storage Strategy, Signs $93.9 Billion Long-Term Agreement, HBF Samples to Debut in 2027]** BlockBeats News, August 14 — SanDisk stated in its latest Investor Day materials that the construction of AI data centers is transforming the demand structure of the flash memory industry. The company estimates that by 2026, the Flash market size will reach approximately 1.2ZB, with data centers surpassing Edge to become the largest source of demand. By 2027, industry revenue TAM will leap from the historical cycle average of around $60 billion to over $300 billion, approaching $500 billion. The core of this narrative lies in AI inference. SanDisk believes that long context, RAG (Retrieval-Augmented Generation), multimodal, and agent-based applications will drive demand for KV Cache, upgrading SSDs from low-value-added storage components to strategic elements in AI infrastructure. The company even refers to SSDs as "Token Batteries," implying that by storing completed computation results, they can reduce redundant calculations, lower energy consumption, and enhance throughput. On the business model front, SanDisk emphasizes signing multi-year agreements with major clients under a new commercial model to mitigate traditional cyclical fluctuations in the NAND industry. The company revealed that eight clients are currently participating in these arrangements, with an average contract duration exceeding four years. By FY2027, approximately half of bit supply will be incorporated into this model, rising to about two-thirds by FY2028. The total contract value, calculated at floor prices, amounts to $93.9 billion, with remaining performance obligations at $91.1 billion and $16.5 billion in financial guarantees supporting these agreements. The financial targets are equally ambitious. SanDisk projects FY2026 full-year revenue to reach $20 billion, a 175% year-over-year increase; Non-GAAP gross margin is expected to be 71.6%, with adjusted free cash flow at $8.7 billion. The company's long-term model for FY2028 to FY2030 indicates sustained mid-to-high double-digit revenue growth, Non-GAAP gross margin around 80%, operating profit margin approximately 75%, and adjusted free cash flow margin around 50%. The next, more distant mainline is HBF high-bandwidth flash memory. SanDisk stated that HBF will address the "memory wall" issue in large model inference, offering 8 to 16 times the capacity of HBM at comparable read bandwidth. The company expects the first HBF inference product samples to appear in 2027, enabling the market to continue reevaluating its long-term potential through changes in AI memory architecture.