The need for more memory evident in every company's earnings report makes the market's negative view of Sandisk hard to understand. Yet splitting a stock above $1,000 is one of the dumbest moves a company can make: it hands market makers the ability to manipulate the shares through options, a risk for Sandisk. x.com  x.com 

SanDisk shows fresh bullish options positioning, including about $20M of out-of-the-money call buying. Answering MarketsMuse's view that these are hedges, the long-dated trades look like new positions: a June 2027 $2,860 call traded 125 contracts against open interest of 7, with similar January 2028 spreads, and nobody scalps a delta-neutral book 157% out of the money. Positioning is observable; intent is a guess. x.com  x.com  x.com 

Sandisk is a tulip bubble on steroids, and such extremes end in losses of 97% or more. Its monthly RSI reached 99.5, and at the roughly $2,350 peak the price stood about 90% above its monthly 50-period moving average. The unwind is in line with the uninverting of the 10-year/3-month yield curve, and @StockSavvyShay notes Sandisk is in its biggest drawdown of the past year. x.com 

Sandisk is drawing a massive put seller, a bullish signal for the stock. x.com 

Large option buyers are signaling something big ahead for SanDisk and the memory theme. Over the past week or so, whales have been loading up 2028 calls at strikes of $3,000 and above, and did so again today, after someone bought over $3.2 million of September 2027 $3,350 calls. x.com 

Sandisk's datacenter shipments and restrained bit-supply plan strengthen its growth case, without settling contract protection in a downturn. Management attributed roughly 60% of fiscal Q1 revenue growth to volume and 40% to price; datacenter sales rose 61% sequentially to $4.8B, supplying 88% of total growth. It retains mid-to-high-teens bit growth rather than accelerating supply. Consumer sales fell 29%, and the CFO cautioned against carrying Q2's growth rate into fiscal Q3. x.com  x.com 

Sandisk could be the memory supercycle's biggest winner because long-term NAND contracts may make earnings more durable than in past cycles. About $93.9 billion of floor-priced deals cover half of expected FY27 bit shipments and two-thirds in FY28 amid rising AI storage demand. Floors do not guarantee margins; management's roughly 50% adjusted free cash flow margin target for FY28-30 is not reported cash flow. Profitable contracts and sustainable cash generation could support a higher multiple. … Show more

Sandisk's earnings growth makes its valuation look unusually low, with guidance showing no slowdown. Revenue rose 378% year over year, and $52.5 GAAP EPS implies a 6.1 annualized P/E, below Micron's. Sandisk's roughly 85% gross margin also compares favorably with SK hynix's apparently sub-50% NAND margin. Next-quarter guidance calls for $12.2 billion-$12.6 billion of revenue and $55-$57 non-GAAP EPS. x.com  x.com  x.com 

Sandisk looks risky at these levels because China's YMTC is stabilizing cutting-edge NAND yields and ramping production, a predictable threat not yet priced into the stock. Per @jukan05, YMTC plans to mass-produce its most advanced NAND at Wuhan Fab 3 from H2 2026, is winning major overseas customers, and is projected to surpass SK Hynix and Micron in NAND output by year-end. x.com  x.com 

SanDisk is drawing aggressive long-term institutional buying that supports further upside. It posted its largest dollar buy volume ever at $1,646.55, a sign of institutions building a long-term position, and weekly high-dollar volume of $140B off the recent low supports a six-month upside continuation pattern. Selling from all-time highs looks inefficient, the monthly trend is bullish, and over $140M went into August 28 $900 calls. x.com  x.com  x.com