Sandisk Soars as Western Digital Reports Strong AI-Driven Demand

Overview

• Weekend reports (June 20–21) confirmed Sandisk has rallied roughly 6,000% since its February 2025 spinoff and is trading near $2,184.75 on the back of sold‑out 2026 production.
• Wall Street coverage shows heavy analyst support for Sandisk with 86% of 21 analysts holding buy ratings and a wide spread of 12‑month price targets that average about $1,863.
• Western Digital posted fiscal Q3 FY26 enterprise HDD revenue growth of 45% year‑over‑year and 11% sequentially, and it guided fiscal Q4 revenue of about $3.65 billion.
• The gains are tied to structural AI demand from hyperscalers plus constrained NAND supply and long lead times to add fab and drive capacity, which have enabled higher pricing and margins.
• Risks include a possible normalization of NAND supply or execution problems that could reverse profits and lofty valuations, while longer term research projects AI growth near a 30.6% CAGR through 2033 supporting multi‑year storage demand.