Post

The reason behind SanDisk’s massive surge is becoming clearer, but unfortunately I was short and got caught on the wrong side. SanDisk jumped as much as 17% overnight and closed up 13.67%, lifting the entire storage sector, with SK Hynix and Micron also rallying strongly. 1. Main catalyst: SanDisk gave an extremely bullish long-term outlook, targeting double-digit revenue growth through 2028–2030, around 80% gross margins, and 50% free-cash-flow margins. It also plans to return excess cash to shareholders after capacity investments. Its AI-inference storage strategy, including growing flash demand and HBF technology, added further excitement. 2. Why the move was so strong: The stock had already been heavily sold after earnings, leaving plenty of short positions. The new guidance triggered aggressive short covering. Softer PPI and stable CPI also improved expectations for liquidity, bringing money back into AI hardware. Long-term supply agreements are another factor, as they could make the storage business less cyclical. 3. Risks: The rally is heavily event-driven, so profit-taking and volatility could be intense. The bullish targets are for the next few years, while near-term earnings guidance hasn’t changed much. Storage stocks also remain sensitive to Treasury yields and Fed policy. 4. What I’m watching: Can SNDK hold the rebound high? Will SK Hynix and Micron continue confirming the sector strength? And what signals come from Jackson Hole and the Fed? If SNDK loses the breakout level quickly, this could turn into another short-lived spike rather than a sustained trend. #CPIPPIEaseFedSplit #KoreaChipsLeadRebound #SpaceX99%ValueFromAI