SanDisk's financial report was unsurprisingly explosive, as SanDisk established the reshaping of the storage industry by AI. The management stated that NAND is moving away from its cyclical nature and becoming a key component of AI infrastructure. According to the data disclosed by the management, the acceleration of demand is also accelerating: 1) Two quarters ago, the market expected the company's data center exabyte growth to be over 20% by 2026; 2) Last quarter, this expectation was raised to over 40%; 3) This quarter, SanDisk has directly raised its forecast for data center bit demand growth in 2026 to nearly 70% (high sexties). CFO Luis Vesoso said that NAND is increasingly becoming a key component of AI infrastructure. Despite the strong short-term prices of storage, the CEO emphasized that the company will not rashly expand production due to strong short-term prices: "Any substantial increase in capital expenditure requires us to have high confidence in demand with attractive price levels over multiple years." Refusing to blindly expand production also indicates that storage giants have learned from the lessons of past "blind expansion" cycles SanDisk is using shortages as leverage to force customers to abandon traditional quarterly bargaining and instead sign long-term agreements (LTAs) that include prepayments and supply commitments. During the conference call, the CFO also admitted that only one agreement has been signed and completed so far. This indicates that although buyers urgently need production capacity, they are still cautious about locking in long-term prices at high levels, and the tug of war between the two sides is still ongoing. During the conference call, an important strategic move was also announced: SanDisk reached an agreement with its partner Kioxia to extend the joint venture (JV) until 2034, laying the foundation for long-term supply stability. New gameplay on the US stock market, starting from Bitget: http://(bitget. com)/markets/stocks