DeepSeek offloads static memory lookup to standard host system DRAM through PCIe prefetching instead of leaning entirely on high-speed GPU HBM. That frees up HBM capacity, and DeepSeek is just one framework among hundreds of LLMs.
The bigger point is DeepSeek's DualPath architecture and KV-cache offloading meaningfully increase demand for enterprise NAND and eSSDs, where $SanDisk Corp.(SNDK)$ leads. Architecture optimizations like this look bullish for storage-class NAND memory rather than a threat to it.
LPDDR5X and LPDDR5 are mainly used in mobile devices and localized edge AI implementations. Enterprise server nodes primarily use standard host DDR5 DRAM and CXL memory expansion fabrics instead.
SanDisk is a pure-play NAND Flash and SSD memory producer. They make 3D NAND for enterprise eSSDs, consumer SSDs, and storage drives. LPDDR is volatile DRAM, which comes from DRAM manufacturers like Samsung, $SK hynix(SKHY)$ , and $Micron Technology(MU)$ , not SanDisk.
Major hyperscalers and enterprise customers have already secured and reserved SanDisk's entire NAND production capacity through FY27, and they're taking orders for FY28. Roughly 67% of the entire planned bit output for FY28 is already sold under signed multi-year LTAs.
These NBM contracts average 4+ years in duration and include enforceable minimum volume guarantees, upfront customer deposits, and structured pricing with defined floors and ceilings.
Demand for high-density enterprise SSDs, like SanDisk's 256TB AI data lake drives, and KV-cache storage layers remains severely constrained on the supply side. That's driving massive gross margin expansion for SanDisk.
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