Hey everyone,
I’ve been watching the memory and storage sector closely, and it’s been a wild ride. SanDisk (SNDK) has obviously been the star of the show, going up 1,000% since its spin-off from Western Digital last year. For those of us who missed that boat or think it’s now too overextended, I’m trying to gauge if there’s still meat on the bone elsewhere.
Specifically, I’m looking at Western Digital (WDC) and the broader HDD/Flash space.
The WDC Case: Since the spin-off, WDC is back to being a pure-play (mostly) on high-capacity HDDs and cloud storage. While it’s up significantly (over 380% in 1 year), it still feels like has room to grow further
* HDD Resilience: AI models need massive data lakes. Are we underestimating the "boring" hard drive demand for cold storage?
* Valuation: Forward P/E is sitting around 29-32x—high for historical WDC, but cheap compared to the rest of the sector.
Other Contenders: I’m also looking at these three. Do you think any of these are actually "undervalued" right now?
1. Micron (MU): Currently trading at a forward P/E of \~11x despite the HBM4 hype. Is the market still pricing them like a cyclical commodity firm instead of an AI infrastructure pillar?
2. Seagate (STX): They seem to be running at max utilization with their HAMR (Heat-Assisted Magnetic Recording) tech.
My Question to the Group:
* Do you think the "Memory Super-Cycle" has another 12-18 months of legs, or are we at the peak?
* Is WDC a buy at $230+, or is the easy money gone?
* Are there any "hidden gem" flash or controller firms (maybe smaller players like Phison or Netac) that aren't getting the Reddit hype yet?
Would love to hear some bear cases too—I’m worried about what happens when the supply shortage eventually eases in 2027.