Citrini analyst: Remains bullish on storage, negative news is gaining more attention

According to Odaily, Citrini analyst jukan posted on X that bearish viewpoints and rumors regarding NAND have been circulating recently, especially from China, along with negative news related to QLC price negotiations. He stated that it is not surprising that SanDisk signed a long-term agreement with Meta at a price below the initial offer. Among NAND manufacturers, SanDisk is the most proactive in securing long-term agreements and plans to allocate more than 50% of its total shipments to such contracts.

Based on this strategy, SanDisk is clearly willing to accept long-term contract pricing below the current quarter's contract price. Therefore, he believes it cannot be inferred that SanDisk is unable to shift its entire shipment to higher-bidding North American clients. Chinese module manufacturers are reportedly being rejected when attempting to sell more enterprise-level SSDs to Chinese CSPs, which he understands is because Chinese CSPs have direct procurement channels with YMTC. Recently, there have also been reports that hyperscale cloud service providers are driving down QLC enterprise SSD prices, resulting in some shipments not being absorbed. However, he understands that neocloud providers have sufficient demand to absorb these shipments. In the case of poor storage stock performance, negative headlines seem to be gaining more attention. He remains bullish on storage.