The results strongly reinforce the AI-driven storage supercycle thesis, and importantly, they do so on both earnings quality and forward visibility.
Are we still early in the supercycle?
The numbers suggest yes. SanDisk’s guide implies not just demand strength, but accelerating pricing power and utilisation. That combination is characteristic of early-to-mid cycle behaviour, not late cycle. Capacity discipline across NAND, AI workloads driving higher endurance and performance requirements, and customers locking in forward supply all point to a structurally tighter market than past cycles. This is not a one-quarter squeeze.
SanDisk vs Western Digital
SanDisk remains the higher-beta, higher-upside expression. It is the purest AI-storage leverage, but also the most vulnerable to sharp pullbacks after parabolic moves.
Western Digital offers a more balanced rerating case. Improving margins, strong free cash flow, and less stretched positioning make it the steadier compounder if the cycle extends.
In short: SanDisk is the momentum and torque play; Western Digital is the risk-adjusted rerating play.
Add now or wait?
After an after-hours surge of this magnitude, chasing is rarely optimal. For existing holders, holding or trimming into strength is sensible. For new exposure, waiting for consolidation or sector-wide pullbacks is prudent. The supercycle may be intact, but entry discipline still matters.
Bottom line: the cycle looks real and durable, but from here, how you buy matters more than what you buy.
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