Question · Q1 2026
C.J. Muse asked about the evolution of customer engagement in an allocation environment, drawing parallels to the HD world's shift to long-term agreements, and inquired about Sandisk's visibility and bit allocation strategy. He also sought clarity on bit shipment growth opportunities for calendar years 2025 and 2026, considering current inventory levels and the BiCS8 ramp.
Answer
Chairman and CEO David Goeckeler noted two phases of customer engagement: multi-quarter deals for supply certainty and proactive discussions extending to calendar year 2027 for long-term demand alignment, especially from Data Center customers. EVP and CFO Luis Visoso added that Sandisk prioritizes strategic customers for bit allocation and aims to maintain market share while growing the Data Center business through innovation like BiCS8, with capital plans supporting mid to high teens long-term demand growth.