Core Viewpoint - Sandisk has experienced a significant stock increase due to high demand for artificial intelligence infrastructure, leading to a supply shortage in memory chips and storage devices, with a total return of 1,500% since its spin-off from Western Digital [1] Company Performance - Sandisk's stock price increased more than sixfold in 2025 and has more than doubled in 2026, currently trading at $576 per share [1][2] - The company reported a 61% revenue increase to $3 billion in Q2 fiscal 2026, driven by strong sales in the data center segment, and non-GAAP earnings surged 404% to $6.20 per diluted share [9] - Management's guidance for Q3 estimates revenue of $4.6 billion and non-GAAP net income of $13.00 per diluted share, indicating a potential doubling of earnings compared to the previous quarter [10] Market Position - Sandisk is the fifth-largest player in the NAND flash memory market and gained 2 percentage points of market share over the past year, while competitors like Samsung and SK Hynix lost market share [6] - The company benefits from a joint venture with Kioxia, allowing for cost efficiencies and supply chain security through shared R&D and capital expenditures [4] Valuation and Analyst Sentiment - Analysts have raised their target prices for Sandisk following exceptional earnings, with a median target price of $690 per share implying a 20% upside, while the highest target price suggests a 73% upside [3][7] - Wall Street estimates Sandisk's adjusted earnings will grow at 156% annually through the fiscal year ending in June 2027, making the current valuation of 80 times earnings appear reasonable [11] Industry Context - The semiconductor industry is cyclical, with potential for market oscillation between supply shortages and gluts, which could affect Sandisk's future valuation [12]

Core Insights - Several top hedge fund managers have purchased shares of Nvidia and Western Digital in Q3, indicating confidence in these stocks despite their significant price increases since January 2023 [1][2]. Nvidia - Nvidia has seen a remarkable return of 1,180% since January 2023, driven by its leadership in graphics processing units (GPUs) and a full-stack strategy that includes data center hardware and software development tools [3][4]. - The company optimizes data center performance by integrating GPUs with CPUs and networking gear, which simplifies infrastructure for customers [5]. - Nvidia's total cost of operation (TCO) is competitive, making it difficult for cheaper alternatives to gain traction, suggesting sustained dominance in AI infrastructure [6]. - Wall Street estimates Nvidia's adjusted earnings will grow at 67% annually through the fiscal year ending January 2027, with a median target price of $250 per share, implying a 33% upside from the current price of $187 [8]. Western Digital - Western Digital has increased by 830% since January 2023, focusing on data storage devices across various markets, particularly hard disk drives (HDDs) [9][12]. - The company leads in HDD shipments, with data center HDD sales projected to grow at 22% annually through 2030, driven by AI infrastructure demand [11]. - In Q1 of fiscal 2026, Western Digital reported a 27% revenue increase to $2.8 billion, with non-GAAP earnings rising 137% to $1.78 per diluted share [12]. - Wall Street estimates adjusted earnings will grow at 26% annually through the fiscal year ending July 2027, with a current valuation of 34 times earnings appearing reasonable [13]. - However, concerns exist regarding the cyclical nature of the HDD market, with potential oversupply following the current shortage, which could lead to lower future earnings expectations and a median target price of $200 per share, indicating a 10% downside from the current price [14].

Market Overview - The S&P 500 has achieved a total return exceeding 17% year-to-date in 2025, marking the continuation of a bullish trend into its fourth year [1] - The year has been characterized by volatility, with the S&P 500 nearly entering a bear market early in 2025 due to tariff-related issues [2] - A subsequent V-shaped rally occurred as inflation trends improved and corporate earnings exceeded expectations, driving the S&P 500 to record highs [3] Sector Performance - The information technology and communication services sectors led the market in 2025, driven by the artificial intelligence theme [7] - However, the AI-driven rally has recently stalled, particularly in December, indicating potential challenges ahead [7] Santa Claus Rally Insights - The Santa Claus Rally period, which typically shows strong performance, has seen negative returns thus far, raising concerns for 2026 based on historical trends [8] - Negative returns during this period have historically preceded bear markets or opportunities to buy stocks at lower prices later in the year [8] Top Performing Companies - **Sandisk (SNDK)**: Achieved over 560% growth since its February 2025 debut, with projected fiscal 2026 EPS growth of over 300% to $12.59 per share, driven by strong NAND pricing and AI-related demand [12][13] - **Western Digital (WDC)**: Delivered over 290% return year-to-date, with fiscal 2026 adjusted EPS projected at $7.66, reflecting a 55% increase from the previous year [15][16] - **Micron (MU)**: Reported a nearly 49% year-over-year revenue increase to around $37 billion in fiscal 2025, with a stock surge of nearly 250% driven by high demand for high-bandwidth memory [22][24] Industry Trends - The computer storage devices industry, including Sandisk and Western Digital, ranks in the top 8% of Zacks Ranked Industries, benefiting from the explosive growth in AI-powered storage markets projected to reach $187.61 billion by 2035 [19] - Data center operators are expanding infrastructure rapidly, sustaining demand for both HDDs and NAND flash-based solutions [19]

Core Insights - Seagate Technology Holdings plc is a major player in the data storage technology and infrastructure solutions market, with a market capitalization of approximately $60.4 billion, making it one of the largest manufacturers of hard disk drives (HDDs) globally [1][2] Performance Metrics - Seagate's stock reached an all-time high of $301.47 recently and has increased by 54.9% over the past three months, significantly outperforming the Nasdaq Composite's 8.1% gains during the same period [3] - Year-to-date, Seagate's stock has surged by 246.3%, and over the past 52 weeks, it has risen by 206.3%, again outpacing the Nasdaq's 22.5% gains in 2025 and 20.2% returns over the past year [4] - Following the release of impressive Q1 results on October 28, Seagate's stock price soared by 19.1% in a single trading session, driven by increased demand for storage solutions and new data centers [5] Financial Highlights - Seagate reported a 21.3% year-over-year increase in revenue, reaching $2.6 billion, reflecting solid growth in sales [5] - The company achieved a 72.3% growth in earnings per share (EPS) to $2.43, surpassing consensus estimates [6] - Among analysts covering Seagate, the consensus rating is a "Strong Buy," with the stock trading slightly above its mean price target of $293.86 [6]

Core Viewpoint - Generating cash is crucial for businesses, but effective cash allocation is key to maximizing shareholder value. Some companies excel in this area while others may struggle. Group 1: Companies to Sell - Kellanova (K) has a trailing 12-month free cash flow margin of 4.7% and trades at $83.27 per share, reflecting a forward P/E of 22.4x, raising concerns about its investment potential [2][4] - Omnicom Group (OMC) has a trailing 12-month free cash flow margin of 10.4% and is trading at $73.90 per share, with a forward P/E of 8.1x, indicating it may not meet investment criteria [5][7] Group 2: Company to Watch - Seagate Technology (STX) boasts a trailing 12-month free cash flow margin of 12.7% and is recognized as a leading producer of data storage solutions [8] - Despite flat unit sales over the past two years and anticipated sales growth of only 2.4% for the next year, Seagate has shown annual revenue growth of 18.5% over the last two years, indicating increased market share [9][11] - Operating margin expansion of 6.9 percentage points over the last five years suggests effective expense optimization, although free cash flow margin has shrunk by 7.6 percentage points, indicating higher capital consumption [10][11]

Core Insights - Seagate Technology Holdings plc is a major player in the data storage technology sector, with a market capitalization of approximately $45 billion, making it one of the largest manufacturers of hard disk drives (HDDs) globally [1][2]. Performance Metrics - Seagate's stock reached an all-time high of $215.20 on September 16 and is currently trading slightly below that peak, having increased by 63% over the past three months, significantly outperforming the S&P 500 Index, which gained 10.3% during the same period [3]. - Year-to-date, Seagate's stock has surged by 147.2%, and over the past 52 weeks, it has increased by 109%, again outperforming the S&P 500's 12.2% and 17.1% gains respectively [4]. Financial Results - In Q4, Seagate reported a 29.5% year-over-year revenue increase to $2.4 billion, exceeding market expectations by 1.6%. The company also achieved a record gross margin, with non-GAAP EPS of $2.59, reflecting a 146.7% year-over-year increase [5]. - Despite strong results, the stock experienced a 3.5% drop following the Q4 earnings release, but rebounded with a 6.5% increase in the next trading session [6]. Analyst Ratings - Among 22 analysts covering Seagate, the consensus rating is a "Moderate Buy," with the stock trading above the mean price target of $174.26 [6].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Sandisk Corporation (Exact name of registrant as specified in its charter) As filed with the Securities and Exchange Commission on April 18, 2025 Registration No. 333- Milpitas, California 95035 (408) 801-1000 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) Bernard Shek Senior Vice Pres ...