Core Insights - SanDisk has significantly raised its NAND flash contract prices by 50%, driven by surging demand from AI data centers and limited wafer supply, causing disruptions across the storage supply chain [1][3] - A-share companies in the flash memory industry are expected to benefit from the ongoing price increase cycle and improved industry conditions [2][6] Company Performance - In Q1 2026, SanDisk reported revenues of $2.308 billion, a 23% year-over-year increase, and a 21% quarter-over-quarter increase, with a notable 26% revenue growth in its data center business [3][5] - SanDisk's GAAP net income for Q1 2026 was $112 million, a 47% decrease year-over-year but a significant 587% increase quarter-over-quarter [4][5] - The gross margin for SanDisk in Q1 2026 was 29.8%, up 3.6 percentage points from the previous quarter, indicating improved profitability despite a decline from the previous year [4] Market Trends - The NAND product demand is currently exceeding supply, with inventory turnover days decreasing from 135 to 115 days, a trend expected to continue until the end of 2026 [5] - Analysts predict that NAND flash prices will continue to rise by 5%-10% in Q4, influenced by strong market demand and seasonal stocking [8] Industry Impact - Companies like Zhaoyi Innovation and Puran have reported price increases for their NAND and NOR Flash products, indicating a positive market response to rising storage prices [6][7] - Jiangbolong has noted that rising wafer prices will positively impact its gross margins, and the company has established long-term partnerships with major wafer suppliers to ensure supply chain resilience [7] - The storage industry is experiencing rapid growth, with companies like Yingtang Zhikong reporting significant year-over-year increases in their storage business due to strong industry demand [8]

Group 1 - The semiconductor materials and equipment theme index on the STAR Market rose by 1.55%, with notable increases in stocks such as Xinyi Chang (+6.72%), Huafeng Measurement Control (+5.36%), and Zhongke Feimeasure (+5.10%) [1] - The STAR Semiconductor ETF (588170) increased by 1.48%, reaching a latest price of 1.1 yuan, with a trading volume of 43.87 million yuan and a turnover rate of 10.93% [1] - The STAR Semiconductor ETF (588170) achieved a new high in scale at 399 million yuan and a new high in shares at 369 million, with a total net inflow of 135 million yuan over the past four days [1] Group 2 - Micron announced the launch of the industry's highest density and radiation-resistant SLC NAND product, with a chip capacity of 256Gb, marking a significant addition to its product lineup [2] - Storage manufacturers are experiencing supply pressure for LPDDR4X, leading to price increases despite attempts by Tier 2 and other market customers to secure supplies at higher prices [2] - Guosen Securities views the storage sector as entering a technological iteration crossroads, anticipating growth opportunities driven by the explosion of data volume and the need for faster data handling and lower power consumption [2] Group 3 - The semiconductor materials ETF (562590) and its linked funds focus on the upstream semiconductor sector, with significant allocations to semiconductor equipment (59%) and semiconductor materials (24%) [3]