In the third quarter of 2025, Stanley Druckenmiller sold his Broadcom stake and initiated a position in Sandisk, a company that has delivered a remarkable 1,050% total return since its February 2025 spinoff. The stock’s advance reflects accelerating adoption of solid-state drives in data centers and enterprise storage, where performance and power efficiency are critical. Druckenmiller bought at an average share price of $58 during Q3, but the subsequent 7× increase in market valuation has pushed Sandisk’s trailing multiple to approximately 170 times earnings, raising questions about near-term upside despite robust earnings growth forecasts.

Sandisk, the fifth-largest NAND flash memory manufacturer, gained a full percentage point of market share in the first half of 2025, bringing its share to 12% of the global NAND market. The company’s strategic capital and R&D partnership with Kioxia has enabled joint wafer fabrication investments, improving cost structure and reducing supply chain risk. Two hyperscale cloud providers are already testing Sandisk’s enterprise-grade SSDs, with a third hyperscaler and a major storage OEM scheduled to begin trials in early 2026. Wall Street forecasts compound annual adjusted earnings growth of 79% through fiscal 2029, driven by an expected NAND pricing upcycle and continued hyperscaler purchasing.

Following a 7.2% mid-day share price jump in January, at least five major brokerages raised Sandisk price targets in Q4 and early Q1: Wells Fargo lifted its target from $230 to $380, Cantor Fitzgerald from $240 to $300, Bank of America from $300 to $390, Wedbush from $220 to $260, and Mizuho from $250 to $410. Sanford C. Bernstein issued the most bullish call, boosting its objective to $580. Of 23 covering analysts, two rate the shares Strong Buy, thirteen rate them Buy and seven rate them Hold, yielding a consensus target of $316.84, which implies modest downside from current levels.

In early December, a Sandisk director sold 1,271 shares at an average of $195.14, reducing their stake by 26.8%, while other insiders have largely refrained from material transactions. Meanwhile, institutions have been accumulating: Vanguard’s new third-quarter position was valued at $1.97 billion, State Street added $491 million, Arrowstreet $297 million, Bank of America $190 million and AQR $163 million. This wave of inflows juxtaposed with selective insider selling underscores divergent views on valuation at current earnings multiples.