Western Digital's 970% Stock Surge: The AI Data Storage Revolution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy SNDK?
Source: Benzinga
- Stock Surge: Western Digital's stock skyrocketed from $28.83 in April 2025 to $307.50, marking a 970% increase driven by surging AI storage demand and margin expansion, underscoring the company's pivotal role in AI infrastructure.
- Strong Financial Performance: In fiscal Q2 2026, Western Digital reported revenue of $2.655 billion, shipping 215 exabytes of storage in a single quarter, with gross margins rising to 46.1%, and full-year revenue expected to double, exceeding $12 billion, indicating robust growth potential in the market.
- Technological Innovation: The company is developing HAMR technology, targeting 100TB hard drives by 2029, which is expected to significantly reduce the cost structure of AI storage, while new high-bandwidth drive technology will double sequential throughput, enhancing data center efficiency.
- Long-term Contracts Secured: Multi-year procurement agreements with top clients like AWS, Microsoft Azure, and Google Cloud ensure stable revenue streams for the coming years, indicating that Western Digital has transformed from a traditional hardware supplier into a key infrastructure provider for AI data storage.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 630.290
Low
220.00
Averages
283.69
High
410.00
Current: 630.290
Low
220.00
Averages
283.69
High
410.00
About SNDK
SanDisk Corporation is a developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology and has consumer brands and franchises globally. The Company's solutions include a range of solid state drives (SSDs) embedded products, removable cards, universal serial bus (USB) drives, and wafers and components. Its broad portfolio of technology and products addresses multiple end markets of cloud, client and consumer. Its cloud end market is comprised primarily of products for public or private cloud environments and enterprise customers. The Company, through the client end market, provides numerous data solutions that it incorporates into its client’s devices, which consist of solid state drive desktop and notebook personal computers, gaming consoles and set top boxes, and flash-based embedded storage products. The Company serves the consumer end market with a portfolio of solid state drives and removable flash, including cards and USB flash drives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Surge: Since its spin-off from Western Digital, Sandisk's shares have skyrocketed by 1,400%, reflecting strong market demand for its flash storage solutions and investor confidence in its future performance.
- Significant Revenue Growth: In Q2 of fiscal 2026, Sandisk's revenue from the edge devices market reached nearly $1.7 billion, a 63% year-over-year increase, primarily driven by the proliferation of AI in PCs and smartphones, with strong growth expected over the next three years.
- Surging Data Center Demand: Sandisk's data center revenue increased by 76% year-over-year to $440 million, and as demand for fast flash storage solutions rises, this segment is expected to have a more substantial impact on the company's performance in the coming three years.
- Massive Earnings Potential: Sandisk's earnings per share are projected to increase by 1,220% this fiscal year to $39.45, and assuming a conservative 25% growth in fiscal 2028, EPS could exceed $95, with a potential stock price of $2,375 based on Nasdaq-100's earnings multiple, indicating significant upside potential.
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- Stock Surge: Since its spin-off from Western Digital, Sandisk's shares have skyrocketed by 1,400%, reflecting strong market demand for its flash storage solutions and investor confidence in its future performance.
- Significant Revenue Growth: In Q2 of fiscal 2026, Sandisk's revenue from the edge devices market reached nearly $1.7 billion, a 63% year-over-year increase, primarily driven by the proliferation of AI in PCs and smartphones, with strong growth expected over the next three years.
- Surging Data Center Demand: Sandisk's data center revenue increased by 76% year-over-year to $440 million, and as demand for fast flash storage solutions rises, this segment is expected to have a more substantial impact on the company's performance in the coming three years.
- Massive Earnings Potential: Sandisk's earnings per share are projected to increase by 1,220% this fiscal year to $39.45, and assuming a conservative 25% growth in fiscal 2028, EPS could exceed $95, with a potential stock price of $2,375 based on Nasdaq-100's earnings multiple, indicating significant upside potential.
See More
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- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
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- Sandisk's Performance Surge: Since splitting from Western Digital, Sandisk's stock has skyrocketed 1,440%, with data center revenue increasing 64% sequentially and 61% year-over-year in Q2 2026, showcasing robust demand and profitability in the NAND flash memory market.
- ServiceNow's Market Opportunity: Despite a 50% decline in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies present growth opportunities, with a current P/E ratio of 29 indicating room for expansion.
- Tech Stock Overall Rebound: As investors refocus on undervalued tech stocks, the S&P 500 has had a lukewarm start, while the Dow Jones Industrial Average reached a record high of 50,000, reflecting a recovering market confidence in technology stocks.
See More
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- Ciena Demand Surge: As companies build new data centers, demand for Ciena's networking components is accelerating, with expectations for its data center business to double sales by 2025, and its addressable market projected to grow from $600 billion to $1 trillion by 2028, highlighting its critical role in AI infrastructure.
- Sandisk Performance Boom: Sandisk's stock has skyrocketed 1,440% since splitting from Western Digital, with data center revenue up 64% sequentially and 61% year-over-year in Q2 2026, reflecting strong demand for NAND flash memory, particularly in AI hyperscalers.
- ServiceNow Market Opportunity: Despite a 50% drop in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies suggest it is undervalued at current prices, with significant growth potential anticipated in 2026.
- Investor Attention: While Ciena is viewed as a high-growth tech stock, it was not included in Motley Fool's current list of top investment picks, indicating that investors should exercise caution and stay informed about market trends.
See More
Three Hyper-Growth Tech Stocks to Buy in 2026
- Ciena's Market Potential: Ciena leads in networking and connectivity, with its data center business expected to double sales by 2025, growing its addressable market from $600 billion last year to $1 trillion by 2028, indicating strong growth potential and profitability.
- Sandisk's Strong Performance: Since splitting from Western Digital, Sandisk's stock has surged 1,440%, with data center revenue up 64% sequentially in Q2 2026, reflecting robust demand for NAND flash memory, and adjusted EPS reaching $6.20, significantly higher than last year's $1.23.
- ServiceNow's Investment Opportunity: Despite a 50% drop in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies suggest it is undervalued at a P/E ratio of 29, indicating substantial growth potential ahead.
- AI-Driven Technological Transformation: As AI technology evolves, companies like Ciena, Sandisk, and ServiceNow are strategically adapting to market demands, particularly with Ciena and Sandisk's rapid growth in the data center sector, signaling future investment opportunities.
See More
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- Surging NAND Prices: The surge in demand for high-performance solid-state drives in AI data centers has led to a significant increase in NAND prices, boosting Sandisk's sales and gross margins, which is expected to enhance its competitive position and solidify its market share.
- TSMC's Market Dominance: Taiwan Semiconductor Manufacturing (TSM), as the world's largest foundry, has a forward P/E of about 26 times, and despite trading near all-time highs, its central role in AI infrastructure makes it a valuable investment, with AI chip revenue projected to grow at over 50% annually through 2029.
- Strong Pricing Power: TSMC's near-monopoly in advanced chip manufacturing, characterized by high pricing power and low defect rates, positions it as a crucial partner for chip designers, ensuring continued benefits from the surging demand for AI chips in the future.
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