SanDisk is the strangest kind of investing problem: the thesis worked almost too well.

When I first wrote it up, the idea was simple: AI infrastructure had a missing middle between HBM and hard drives. Enterprise NAND would become the warm-storage layer for inference, KV cache, RAG, long context windows, and agentic workloads.

That part is now validated.

The stock has gone from my original $244 initiation to $1,127. Datacenter is now 25% of revenue. Gross margins just printed near 80%. SanDisk is no longer fighting for orders; it is choosing customers.

But the harder question starts now.

Is this just the greatest NAND upcycle in history, or are SanDisk’s new multi-year contracts turning part of a commodity cycle into durable earnings power?

My latest update is less of a victory lap and more of a framework reset: the demand debate is over. The real debate is the EPS floor.