2026-01-03 07:25:12

The U.S. stock market in 2025 saw a textbook-level rally in the storage chip sector. SanDisk became the biggest winner of the S&P 500 with an annual increase of 559%, and after dividend reinvestment, the total return even reached 577%. The stock closed the year at $237.38, with a market capitalization surpassing $34.7 billion. What does this mean? It’s roughly more than a fivefold increase.

Why is it so crazy? Essentially, it’s due to the explosion of AI infrastructure. Large model training and data center expansions are happening one after another, turning high-capacity SSDs from luxury items into necessities. SanDisk’s Q1 FY2026 revenue grew 23% year-over-year, which already indicates the true demand strength. The timing of Western Digital’s spin-off in February was perfect, coinciding with NAND flash entering a super cycle of price hikes. In November, contract prices surged by 50% at once, and this supply-demand mismatch directly ignited the stock price.

But this wave of enthusiasm isn’t limited to SanDisk alone. Western Digital and Micron Technology also saw gains exceeding 240%, with several giants dominating the top of the gainers list. Hot money even flowed into Hong Kong stocks, with companies like Huahong Semiconductor experiencing significant gains at the start of the year. The A-share storage industry chain has also been re-evaluated by the market.

However, there is a question worth pondering—after the rapid rise, valuations are already high. If AI commercialization doesn’t meet expectations, the risk of volatility could be concentrated. What do you think about the sustainability of the storage sector in 2026? Can domestic storage companies truly seize this replacement opportunity?

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SmartContractRebel

· 01-06 06:59

577%? Is that real? How long would it take to break even?

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WalletDivorcer

· 01-06 06:55

SanDisk's 5x surge is truly amazing, but this wave's valuation is shockingly inflated... The AI demand explosion is real, but the key is when will it be monetized? As the supply chain recovers, can these prices hold up? Don't even think about domestic chips; they're still a bit behind. In an era of quick profits, who dares to go all-in at high levels?

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BearMarketBard

· 01-06 00:58

SanDisk doubles five times? This wave of market is crazy, definitely an AI dividend. Whether domestic companies can seize this opportunity is the key, but with such high valuations, it's indeed a bit uncertain.

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zkNoob

· 01-03 07:53

SanDisk's 5x increase is truly outrageous; AI is really more than just hype... But right now, the entry point is really aggressive. Be careful not to become the last leek. Whether domestic storage can rise mainly depends on breakthroughs in technology. It's a hot topic, but the difficulty is even greater. The 559% figure looks impressive, but if AI doesn't commercialize that quickly, it could all be for nothing. Western Digital's independent listing timing is indeed well-timed, but how long this supply chain dividend can last is really uncertain.

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PhantomHunter

· 01-03 07:52

Want to multiply by 5? Come on, this is just another bubble of AI hype. Wait, looking at it this way, the valuation is indeed outrageous, with risks off the charts. The chip price increase cycle has never lasted long, be careful of catching the bag. Domestic storage? Wake up, the technology gap hasn't been bridged yet. In the long run, when supply eases, prices will drop. How aggressive do you have to be to get in now? SanDisk's recent luck was just good timing, not strength. Who can really say how much storage AI actually needs? Anyway, I can't understand it. I think storage will cool down by 2026; it came so fast and will go just as quickly. Western Digital's IPO timing was really perfect, but that also shows top management is offloading.

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EntryPositionAnalyst

· 01-03 07:43

SanDisk doubles five times? Is this a gamble on AI infrastructure or just throwing a tantrum? The mismatch of supply and demand will eventually return to reality.

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HalfIsEmpty

· 01-03 07:30

Betting on a 5x increase still requires caution; the aftermath of catching the top... --- AI infrastructure is indeed fierce this time, but how long can the supply and demand mismatch last? --- SanDisk has risen this time, but why is there still no movement in domestic storage? --- Wait, the valuation is already so high, do you still dare to chase? --- Basically, it's still a gamble on AI commercialization; if it doesn't succeed, it's game over. --- Huahong has surged so strongly; why are Hong Kong stocks in storage also starting to move? --- I just want to know, after this wave of rise, will it cool down as quickly as the previous chips? --- The semiconductor cycle has never disappointed... but when it’s bad, it’s really bad. --- That timing for Western Digital’s IPO was truly perfect; no one can hit the timing this accurately. --- Can the A-share storage industry chain really seize this opportunity? It feels a bit uncertain. --- Once the supply chain loosens, these stocks are probably going to be halved; I’m a bit scared.

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