Western Digital’s SanDisk Jumps 10% in February, Six-Month Rally Tops 1,000%
Western Digital’s SanDisk unit posted a 10% gain in February, extending its six-month rally beyond 1,000% as AI demand tightened memory supply. CEO highlighted new multi-year data-center supply agreements, but analysts remain skeptical about reliance on commodity memory chips and face short-seller scrutiny.
1. SanDisk Shares Surge
Western Digital’s SanDisk unit saw its share price climb 10% in February, driven by AI-related memory chip supply tightness. This gain capped a six-month advance exceeding 1,000% as investors bet on limited flash memory availability.
2. CEO Emphasizes Data-Center Deals
Management announced multi-year supply agreements with major data-center operators to secure capacity for cloud and enterprise workloads. These deals aim to lock in demand and support long-term revenue streams beyond spot market sales.
3. Market Skepticism and Criticism
Despite the rally, analysts question the unit’s reliance on commodity memory chips and ability to innovate in high-end segments. Short-seller reports have highlighted potential inventory risks and margin pressures if supply conditions normalize.