Core Viewpoint - Sandisk has experienced a significant stock surge of 1,500% since its spin-off from Western Digital in February 2025, making it one of the hottest stocks in the S&P 500 [1] Company Performance - Sandisk's revenue for the second quarter of fiscal year 2026 reached $3.03 billion, a 61% increase year over year, exceeding estimates by approximately $360 million [6] - The company's earnings per share (EPS) rose by 404% to $6.20, significantly above the estimated $3.54 [6] - For the current quarter, Sandisk projects revenue between $4.4 billion and $4.8 billion, representing a year-over-year increase of approximately 160% to 183% [7] - EPS is projected to be between $12 and $14, a substantial improvement from a loss of $0.30 in the previous year [7] Market Position - Sandisk is positioned as a leading manufacturer of advanced storage devices essential for the AI ecosystem, allowing for the storage and quick access of large data volumes necessary for AI training [3][4] - The demand for Sandisk's products is outpacing supply, enabling the company to raise prices significantly, which attracts investor interest [4] Stock Valuation - Despite the strong business performance, the current stock valuation suggests that much of the growth is already priced in, leading to high investor expectations [9] - Investing in companies with strong fundamentals at unreasonable prices may result in disappointing long-term returns, indicating that there may be better-valued alternatives in the market [10]