Sou Hu Cai Jing·2026-02-19 14:33Group 1 - Western Digital plans to sell part of its stake in subsidiary SanDisk through a secondary offering, with a transaction size of approximately $3.09 billion (RMB 21.3 billion) [1] - The sale involves approximately 5.8 million shares, priced at $545 per share, representing a discount of about 7.7% from SanDisk's closing price [1] - This divestiture is expected to accelerate Western Digital's deleveraging process, potentially leading the company towards a net cash position and increasing earnings per share by 4% to 6% in the short to medium term [1] Group 2 - SanDisk's stock has performed exceptionally well, with a cumulative increase of over 1500% since its spin-off from Western Digital in February 2025, and a nearly 150% rise in 2026 [3] - In comparison, Western Digital's stock has increased by 65%, ranking third among S&P 500 constituents [3] Group 3 - Western Digital reported a 25% year-over-year revenue growth to $3.02 billion for the second quarter of the 2026 fiscal year, exceeding Wall Street's expectations [5] - The gross margin improved from 38.4% to 46.1%, and net profit surged by 209% to $1.842 billion [5] - For the third quarter of the 2026 fiscal year, Western Digital anticipates revenue of $3.2 billion (±$100 million), surpassing analyst expectations [5] - The CEO highlighted that the demand for HDDs is structurally growing due to AI applications, which generate vast amounts of new data requiring low-cost storage [5]