Sandisk shares rose by 600%, as AI data centers drive SSD demand
After Sandisk was spun off from Western Digital, in 2026its stock rose by 600%. The company reported that revenue increased by 251% year over year and that its operating margin reached 78.4%. However, analysts question the sustainability of the current boom because of the memory industry's cyclicality and pressure on technology spending.
After Sandisk was spun off from Western Digital, in 2026its stock rose by 600%. This movement is directly linked to growing investor interest resulting from the concentration of SSD demand.
The company has operated as an independently listed company since the spinoff. The background to the spinoff and changes in its listing structure were reflected in the stock's performance.
According to the company's report, revenue increased by 251% year over year, while its operating margin stood at 78.4%. These figures were explained as resulting from increased SSD revenue.
The growth driver is expanding SSD demand from AI data centers. Rising demand for storage devices in the data center industry has boosted sales.
According to the article, some analysts pointed out that the memory sector is highly cyclical. They cite significant fluctuations in demand and prices during past cycles as the basis for their view.
Some analysts also warned that pressure on investors’ technology spending could affect demand. Changes in corporate customers’ inventory and spending plans have been cited as important variables.
Several analysts expressed concern over whether the current share price is expensive relative to earnings. The valuation debate is continuing in the market.
The article’s main point is that short-term earnings and margins are strong, but medium- to long-term sustainability is uncertain due to the characteristics of the sector. It says investors should monitor performance indicators and changes in industry conditions after the spin-off.
Sources: The Motley Fool
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