Sandisk has surged nearly 3,000% over the last year, and the article argues the stock could still move higher thanks to its pure-play NAND exposure to growing LLM demand. The main risks highlighted are a parabolic share-price move, potential global NAND oversupply, and valuation concerns. The piece is primarily analytical rather than a fresh catalyst, but it reinforces a constructive case for the stock.
The important second-order effect is that SNDK’s move is no longer just a “better NAND” story; it has become a de facto AI infrastructure beta. If buyers believe memory pricing can stay constructive into the LLM buildout cycle, capital will rotate toward the most leveraged way to express that view, and SNDK becomes the liquid vehicle while weaker non-AI storage names get forced into relative underperformance. That creates a reflexive tape: momentum and positioning can keep the stock bid even if fundamentals are only gradually improving.
The real risk is that the market is front-running a multi-quarter earnings bridge that may not arrive as cleanly as the chart implies. NAND is notorious for overshooting on both supply and demand, and if hyperscaler procurement normalizes after a build cycle, the stock can de-rate quickly because expectations are already stretched far ahead of cash flow. In that regime, the next leg lower is usually triggered not by a collapse in demand, but by any evidence that pricing inflection is slowing faster than consensus assumes.
WDC is the cleaner way to express the downside to the “all-memory is AI-enabled” narrative: if the market starts to distinguish between pure-play scarcity optionality and legacy exposure, the gap between the two should widen. A parabolic stock with a sharp sentiment premium tends to be most vulnerable in the 1-3 month window if positioning gets crowded or if the next quarter fails to reset estimates upward enough. Conversely, if management can extend guidepost confidence through the next earnings cycle, the squeeze can persist longer than valuation alone would justify.
Consensus is likely underestimating how much of SNDK’s upside is driven by flow rather than near-term fundamental revision. That matters because flow-driven names can overshoot fair value by another 20-40% before the first meaningful air pocket, but they also snap back hard once marginal buyers exhaust. The best contrarian read is not to fade it outright, but to respect that the stock may still have upside if AI memory demand remains the market’s preferred narrative, while setting tight time-based risk controls.
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