Economic Observation Network SanDisk is facing controversy over the storage chip cycle, with performance guidance exceeding expectations and clear institutional long short divergence.

Related Industry Trends:
The news that Meta is considering selling idle computing power has raised concerns in the market about tech giant AI capital spending peaking TSMC announced a significant increase in annual capital expenditure to over $60 billion (July 16), as the market is concerned about its consumption of free cash flow and dragging down chip stocks 。

Bearish logic:
It is believed that storage chips are a strong cyclical industry, with current prices and profits at historic highs that are unsustainable. The stock price has risen too much in the first half of the year (858%), and there is pressure for a correction 。

Read more logic:
Believing that AI driven demand (especially data center inference) is structural growth, and the company's business model is shifting towards "long-term agreements", which can smooth cycle fluctuations and enhance profit visibility Multiple institutions have raised their target prices against the trend during the decline, such as Goldman Sachs to $2200 and Bernstein to $3000 。

Performance and business situation:
The revenue guidance for Q4 of the 2026 fiscal year (announced on August 5th) is $7.75-8.25 billion, with non GAAP earnings per share of $30-33, both significantly exceeding market expectations 。

Financial situation:
Q3 gross profit margin reached 78.35%, zero debt on the balance sheet, and initiated a $6 billion stock buyback 。

The above content is based on publicly available information and does not constitute investment advice.