⚡️ Friends, SanDisk ($SNDK) has really caught everyone off guard. Last year, it was still a subsidiary of Western Digital, dragged down by HDDs, and was valued like a cyclical stock, hastily given a 10x PE.
This February, it split and went public independently, and the narrative changed. In less than 15 months, it skyrocketed from a few dozen dollars to over 1500, with a market cap surpassing 200 billion, overtaking its parent company. In 2026, the increase is close to 500%, while NVIDIA only rose by over 70%.
Last week's earnings report showed a 251% year-over-year revenue increase, a gross margin of 78.4%, and earnings per share of $23.41, blowing past expectations. Not just meeting targets, but crushing them. Storage has shifted from being a supporting role in AI to a bottleneck-level core component.
The logic has changed as AI enters the multimodal and reasoning phase, with an explosion in data throughput, making enterprise SSDs the weak link. Jensen Huang mentioned that storage is an undeveloped market, and it's now beginning to materialize.
The divergence is also quite obvious: NAND (SanDisk) +250%, HBM (Micron Technology) +196%, HDD only +40%. Funds have already picked sides.
More importantly, the long-term agreements have locked in around $42 billion in minimum income + $11 billion in guarantees, allowing storage to break free from being considered a cyclical stock and lean towards growth stock characteristics. In terms of valuation, the current PE is 43x (looking pricey), while the forward PE is about 19x (still acceptable).
Some have already understood early on; Leopold Aschenbrenner bought in at ~$112 and now holds nearly $1.5 billion; on-chain trader yixie10 is going long with high leverage and making a killing.
Now the question is whether you can chase it at 1400+. The bullish logic is straightforward: Wall Street has a target price of $2000, and if AI continues to consume storage, some are even calling for $3000; but the risks are very real: as Samsung Electronics, SK Hynix, and Kioxia expand production, prices could crash, and the demand is fundamentally being squeezed out by AI, with consumer electronics not truly recovering.
This is a faith stock; if you believe in the path to AGI and consequently trust that storage demand will explode, then it’s worth holding long-term; if not, then this position is a classic high point.
Sometimes, the most boring places are actually the least crowded. But this time, the decade of AI may just be beginning, and the story of storage has only just been awakened.
This February, it split and went public independently, and the narrative changed. In less than 15 months, it skyrocketed from a few dozen dollars to over 1500, with a market cap surpassing 200 billion, overtaking its parent company. In 2026, the increase is close to 500%, while NVIDIA only rose by over 70%.
Last week's earnings report showed a 251% year-over-year revenue increase, a gross margin of 78.4%, and earnings per share of $23.41, blowing past expectations. Not just meeting targets, but crushing them. Storage has shifted from being a supporting role in AI to a bottleneck-level core component.
The logic has changed as AI enters the multimodal and reasoning phase, with an explosion in data throughput, making enterprise SSDs the weak link. Jensen Huang mentioned that storage is an undeveloped market, and it's now beginning to materialize.
The divergence is also quite obvious: NAND (SanDisk) +250%, HBM (Micron Technology) +196%, HDD only +40%. Funds have already picked sides.
More importantly, the long-term agreements have locked in around $42 billion in minimum income + $11 billion in guarantees, allowing storage to break free from being considered a cyclical stock and lean towards growth stock characteristics. In terms of valuation, the current PE is 43x (looking pricey), while the forward PE is about 19x (still acceptable).
Some have already understood early on; Leopold Aschenbrenner bought in at ~$112 and now holds nearly $1.5 billion; on-chain trader yixie10 is going long with high leverage and making a killing.
Now the question is whether you can chase it at 1400+. The bullish logic is straightforward: Wall Street has a target price of $2000, and if AI continues to consume storage, some are even calling for $3000; but the risks are very real: as Samsung Electronics, SK Hynix, and Kioxia expand production, prices could crash, and the demand is fundamentally being squeezed out by AI, with consumer electronics not truly recovering.
This is a faith stock; if you believe in the path to AGI and consequently trust that storage demand will explode, then it’s worth holding long-term; if not, then this position is a classic high point.
Sometimes, the most boring places are actually the least crowded. But this time, the decade of AI may just be beginning, and the story of storage has only just been awakened.