This AI Stock's Valuation Makes No Sense to Me. Here's Why That's a Good Thing.

Sandisk (SNDK) has surged >4,000% since its Feb 2025 IPO and is up roughly 520% year-to-date as AI-driven memory demand fuels a “memory supercycle.” The company reported blowout fiscal Q3 results — revenue $5.9B (+97% QoQ, +251% YoY), net income $3.6B ($23.03/sh), and gross margin ~78.4% — and issued strong Q4 guidance ($7.75–$8.25B, ~36% QoQ at midpoint). Despite the dramatic price appreciation, Sandisk trades at ~23x forward earnings, below the Nasdaq-100 average, which the author argues makes the rally fundamentally supported rather than purely speculative. The piece is market-positive: robust earnings, full order books for 2026 and backlog into 2027, and continued pricing power suggest further upside, though growth is expected to eventually decelerate.