Ge Long Hui·2025-11-10 06:59Core Viewpoint - SanDisk, a leading flash memory company, has significantly raised NAND flash contract prices by up to 50% in November, marking at least the third price increase this year, following a 10% increase in April and another 10% in September [1][5]. Group 1: Company Performance - SanDisk reported a substantial increase in revenue for the first fiscal quarter of 2026, reaching $2.31 billion, a year-on-year growth of 22.6% and a quarter-on-quarter growth of 21%, exceeding market expectations [5]. - The company's operating profit surged to $176 million, a remarkable increase of 878% quarter-on-quarter, with a net profit of $110 million, contrasting with a loss of $23 million in the previous quarter [5]. - For the second fiscal quarter of 2026, SanDisk anticipates revenue between $2.55 billion and $2.65 billion [6]. Group 2: Market Trends - The NAND flash market is expected to continue facing supply shortages until the end of 2026, with customer feedback suggesting that this tight supply situation may extend into 2027 [7]. - The storage chip sector in the A-share market has seen significant stock price increases, with several companies doubling their stock prices this year, including a nearly 500% increase for Xiangnong Xinchuan [3][4]. Group 3: Industry Dynamics - The price hikes initiated by SanDisk have triggered a chain reaction among storage module manufacturers, leading companies like Transcend and ADATA to suspend shipments and reassess pricing strategies [11]. - The global memory industry is experiencing a structural and long-term severe shortage, exacerbated by the rapid expansion of artificial intelligence applications, with supply-demand gaps now estimated to be double previous forecasts [12]. - Analysts predict that the current cycle of price increases and supply shortages in the storage industry will likely continue until at least the second half of 2027, driven by the explosive demand for storage in the AI era [12].