NAND swung from 22% to 78% in a year. The math also works in reverse — and historically, it always has.
↓ the brief below
Y-ago vs. now ~gross margin~
22 → 78
¢
A 55-point swing in 12 months — the largest single-year gross-margin move Sandisk has ever reported. The same move could happen in the other direction.
Through Flash Ventures, we and Kioxia collaborate in the development and manufacture of flash-based memory wafers... Flash Ventures will begin flash-based manufacturing operations at an eighth facility in Japan in calendar year 2025.
↳ Sandisk doesn't own its own NAND fabs. Every wafer runs through a joint venture with Kioxia in Japan. A single counterparty owns half of the engine that makes Sandisk's chips.
Source · 10-K · Business · Flash Ventures · FY2025 · Filed Aug 21, 2025
✦ Teach me
Customer concentration
If most of a company's money comes from a small number of customers, that's customer concentration. Lose one big buyer, lose a lot of revenue all at once.
The boom in Sandisk's datacenter line is driven by a handful of — Amazon, Microsoft, Google, Meta. Their AI guidance is what moves the line.
Wall Street calls this
Customer concentration
When a few customers can swing the whole business, the *fragility* is in the relationships, not just the demand.
From the press release · the forward-looking risks
Other key risks and uncertainties that could cause actual results to differ materially... include... changes to the Company's relationships with key customers or consolidation among our customer base... fluctuations in average selling prices... [and] our reliance on strategic relationships with key partners, including Kioxia Corporation.
↳ Sandisk's own list of what could break the story leads with customer relationships and Kioxia. Both are exactly the levers that are currently going right.