Why this top investor is fleeing AMD but buying SanDisk after both stocks crashed

The article contrasts two post-earnings sell-offs: AMD and SanDisk both fell about 9%, but one investor is bearish on AMD and bullish on SanDisk. AMD posted record Q2 revenue of $11.54 billion, up 50% year over year, and Data Center revenue more than doubled to $6.72 billion, yet its adjusted gross margin is expected to stay flat at 56% in Q3. That lack of margin expansion is seen as a warning sign, especially as AMD shifts toward rack-scale AI systems with added integration costs. SanDisk, by contrast, reported fiscal Q4 revenue of $8.97 billion, up 372% year over year, with adjusted EPS of $39.25 and non-GAAP gross margin of 84.6%. Investors are focusing on guidance, but the company’s new contract model and $93.9 billion of minimum contracted revenue could make NAND earnings less cyclical and more predictable. The market takeaway is that AMD’s AI growth may not yet justify its valuation, while SanDisk may offer better earnings durability and upside despite its sell-off.