SanDisk CEO David Goeckeler announced a strategic shift toward long-term supply agreements with data center customers during Bernstein's TMT Forum. This move aims to manage structural changes in the NAND flash market triggered by the artificial intelligence boom.
The company is moving away from traditional quarterly pricing to establish supply assurance mechanisms for hyperscalers. These multi-year contracts are designed to provide predictable demand and more attractive economics for both parties.
SanDisk projects the data center will become its largest market segment by 2026. The segment recorded 64% sequential growth in the most recent quarter. Customers are currently providing demand forecasts extending through 2028 to facilitate these multi-year deals.
CFO Luis Visoso stated that customers who commit to long-term agreements will receive priority supply during tight market conditions. This policy reinforces the strategic importance of these new partnerships as the market evolves.