WDC - Western Digital (SanDisk)

Susquehanna raised price target from $2,000 to $3,250. Benefiting from memory chip supply-demand gap and pricing power.

Stock up over 400% this year. Memory chips are a commodity — supply will normalize and prices will come back down. Stock priced like the shortage lasts forever. Stock analyzer shows intrinsic value middle estimate of $260 vs current price around $1,430. Profit margins tripled last year but historically were 11-14%, suggesting the current margins are unsustainable.

Western Digital is mentioned as being up 200% year-to-date as part of the memory trade of 2026. No specific recommendation is given; it is cited as context for the sector's rally.

Christophe groups SanDisk with Micron as a speculative memory bottleneck stock. He notes the backlog is huge but bottlenecks typically only last 2 years, and he is not making a speculative bet on it. He advises staying away.

Grouped with Micron, SanDisk, and Seagate as cyclical semiconductor/memory chip stocks that will see margins compress and stock prices crater as the cycle turns.

Host notes Western Digital is up 1,000% in the last year and 1,600% from April 2025 lows. No explicit recommendation, just observing the massive rally.

Host notes SanDisk fell under $1,000 after earnings and buyers at that level are now up ~24%. Memory companies signing long-term, high-margin contracts. If contracts are broken, SanDisk stands to benefit billions. Growth expected to continue as long as AI demand persists.

Mentioned as a stock that has already run significantly. Cited as having strong post-earnings performance in the memory/storage space.

Host notes Western Digital reported strong results: EPS doubled YoY, revenue up 45%, EPS beat by 14%. However, the stock traded down 5.5% post-earnings. He attributes this to profit-taking after an 86% run in SanDisk and 67% in WDC over the past month. He implies the fundamentals remain strong.

Put in a topping tail yesterday, another memory player showing signs of having topped out.