After Surging 3,110%, Has Sandisk Already Had Its "Nvidia Moment"?

Last February, Western Digital spun off Sandisk (NASDAQ: SNDK) as a standalone company, specializing in NAND flash storage for solid-state drives (SSDs) across three end markets. These markets include data centers, edge devices such as PCs, phones, cars, and gaming consoles, and branded consumer storage solutions. While this may seem mundane, the situation changes when considering the workloads that utilize Sandisk's products.

Today, training and running large language models not only consume GPUs but also require high-speed storage for data lakes, model weights, and cache as inference deployments scale. As AI hyperscalers expand their capital expenditure (capex) budgets beyond chips, a supercycle in the memory market is emerging. While most investors familiar with the AI trade know these dynamics, they may not fully grasp how to price the scale of this shift.

Continued analysis is necessary to understand the implications of this supercycle and how it may impact Sandisk's performance and investors' expectations.