The results strongly suggest the storage supercycle is not finished, but the easy phase is likely behind us.
Do the beats signal early innings?
They confirm that demand is still accelerating, particularly from AI training, inference, and data-centre refresh cycles. What matters more than the headline beat is the forward guide. SanDisk’s Q3 outlook implies demand visibility well beyond a one-quarter burst, while Western Digital’s margin expansion shows pricing power is still improving. This looks less like a peak and more like the mid-cycle acceleration phase, though volatility will rise as expectations reset higher.
SanDisk vs Western Digital
SanDisk remains the higher-beta, higher-upside play. Its pure exposure to NAND and AI-driven storage demand means earnings revisions can still chase price. However, after a near-vertical move, drawdowns will be sharp when momentum pauses.
Western Digital offers a cleaner rerating story. Cash flow is improving, balance-sheet risk is falling, and margins are recovering from depressed levels. Upside may be less explosive, but downside risk is more contained.
Add now or wait?
I would not chase strength here. Storage is now a core AI infrastructure trade, but after after-hours spikes of this magnitude, pullbacks are normal. The better approach is staged exposure: keep a core position, add selectively on consolidation or broad-market weakness, and avoid sizing as if volatility has disappeared.
Bottom line
The supercycle is intact. SanDisk offers torque, Western Digital offers durability. Timing, not thesis, is now the dominant risk.
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