Core Insights - SanDisk shares have surged over 110% this month, reaching a record high with a 17% increase on a single day [1][2][12] Company Overview - SanDisk is a spin-off from Western Digital, focusing on nan flash memory, which does not require power to maintain memory status, unlike DRAM chips [2][3] - The spin-off occurred in February 2025, serving as a primary catalyst for both SanDisk and Western Digital [3] Market Dynamics - There is a significant demand for enterprise-based AI, driving the need for both server and PC memory, as current inventories are insufficient to meet this demand [3][4] - The market is experiencing both secular and cyclical movements, with PC upgrades anticipated due to the discontinuation of support for Microsoft's Windows 10 [4] Demand and Supply Factors - The demand for memory is being fueled by cloud computing and edge cloud computing, which require high bandwidth memory and storage [5] - Memory companies, including SanDisk, are benefiting from supply constraints that are firming up prices, leading to higher revenue and earnings [8][9] Financial Performance - SanDisk's earnings over the last 12 months were approximately $1.75 per share, with estimates for the 2026 fiscal year around $616 million, indicating a projected 46% earnings growth for 2027 [9][10] - The forward earnings multiple for 2027 is around 11 times earnings, suggesting that the stock is trading at a significant discount to its expected growth rate [10] Valuation Insights - Despite the recent price surge, the valuation may still have room for growth, as earnings are expected to rise alongside stock prices, keeping the earnings multiple relatively low [11]