Sandisk (SNDK) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Market outlook and demand trends

• Strong conviction that the NAND market will be undersupplied through at least 2026, with significant demand growth driven by AI and data center expansion.

• Data center exabyte demand forecasts have increased from mid-20s to mid/high-60s growth rates within a year, reflecting rapid acceleration.

• AI integration is accelerating NAND adoption in data centers, with NAND and hard drives seen as complementary technologies.

• The buyer profile in the NAND market is shifting from commodity resellers to large-scale, architecture-driven consumers seeking long-term supply certainty.

• Attractive demand is prioritized, focusing on customers who value the technology and are committed to long-term growth.

Business model transformation and customer agreements

• Moving away from traditional quarterly auctions to multi-year agreements, aiming for greater demand visibility and alignment with large customers.

• New agreements emphasize financial stability in both strong and weak markets, with commitments to growing exabyte volumes and contract completion.

• Negotiations focus on aligning incentives and ensuring both parties benefit, with some agreements involving prepayments and enforceable commitments.

• The goal is not to increase CapEx for its own sake, but to secure consumption for already planned production and investments.

• Industry consolidation is not seen as necessary for strong economics; scale can be achieved through joint ventures and business model innovation.

Technology and innovation

• BiCS8 node and new enterprise SSD controller are seen as key technology advances, enabling higher density and performance.

• High-Bandwidth Flash is being developed to address AI inference needs, with industry collaboration on standardization and device readiness expected within a year.

• New use cases, such as Key-Value Cache, could drive significant incremental NAND demand by 2027 and beyond.

• Ongoing R&D and CapEx investments over 25 years position the company to capitalize on emerging AI and storage trends.

• The company is optimistic about continued innovation and the central role of NAND in future technology architectures.