The earnings call shed light on the significant trends shaping the NAND flash memory market. Presently, the demand for SanDisk's NAND flash memory products significantly outstrips supply. This supply-demand gap is anticipated to persist until the end of 2026, or potentially even beyond.

Customer contracting approaches have undergone a notable transformation, shifting from quarterly orders to multi-year long-term agreements. Some major clients have also provided their demand forecasts extending into 2027.

The data center sector is undergoing explosive growth and is forecasted to emerge as the largest consumer of NAND flash memory by 2026, thereby providing a substantial boost to the industry's development.

SanDisk's revenue performance in the first quarter of fiscal year 2026 was truly outstanding, with a 23% increase compared to the same period last year and a 21% rise from the previous quarter. The quarterly revenue from the data center business witnessed a sequential growth of 26%.

From a technological standpoint, products utilizing the new-generation BiCS8 process constituted 15% of the shipments during the quarter. These products are expected to become the mainstream capacity by the end of the fiscal year, further bolstering SanDisk's market competitiveness.