Sandisk Delivers Record Revenue as Storage Peers Fall 21% on TurboQuant Fears
Sandisk delivered its strongest quarterly results ever, ranking among top performers and outpacing six peers. Shares slid alongside Seagate and Western Digital’s 21% pullback despite Bernstein’s bullish upgrade of Western Digital’s price target from $170 to $340, arguing TurboQuant compression has no HDD impact.
1. Record Quarterly Performance
Sandisk reported its best quarter on record, driven by robust demand for its NAND flash products and higher average selling prices. Revenue and profit margins both reached all-time highs, placing Sandisk among the top seven stocks with best-ever quarterly returns.
2. Sector Pullback on Compression Algorithm Fears
Shares of Sandisk, Seagate and Western Digital declined following market concerns over Google’s new TurboQuant compression algorithm. The sell-off dragged peers down by 21%, despite TurboQuant only targeting KV cache and having negligible impact on NAND flash demand.
3. Bernstein Upgrade and Sector Outlook
Bernstein upgraded Western Digital’s rating to Outperform and raised its price target from $170 to $340, citing strong fundamentals and zero HDD demand impact from TurboQuant. The firm projects a 24% CAGR in combined revenue for Western Digital and Seagate through fiscal 2030, underscoring positive industry trends that benefit Sandisk.