Flash Memory Leader SanDisk Sees Major Investor Exit Amid Record AI Boom

Billionaire investor Stanley Druckenmiller sells entire SanDisk stake following its massive post-spinoff rally, as the firm posts stellar AI-driven results but faces analyst skepticism.

Prominent billionaire investor Stanley Druckenmiller has completely exited his stake in SanDisk, according to recent regulatory filings. The move, executed through his Duquesne Family Office, comes after the stock’s extraordinary rally of approximately 1,470% since its separation from Western Digital in February 2025. The shares have recently faced selling pressure, declining nearly 7% to $527 in Friday’s trading session.

Stellar Quarterly Performance Driven by AI Demand

This significant portfolio shift occurs against the backdrop of SanDisk's remarkable financial results. For its second fiscal quarter ending January 2026, the company reported revenue of $3.03 billion, representing a 61% year-over-year increase. Adjusted earnings per share soared to $6.20, dramatically surpassing the consensus estimate of $3.31. The gross margin expanded significantly to 51.1%, an improvement of 18.6 percentage points from the prior year.

This surge is attributed to a severe shortage in NAND flash memory, fueled by massive global investment in artificial intelligence infrastructure. SanDisk has successfully implemented substantial price increases for its solid-state drives in the data center segment. Production capacity for enterprise storage is effectively sold out through the end of 2026, with many customers securing long-term supply agreements.

Diverging Institutional Moves and Analyst Skepticism

While Druckenmiller liquidates his position, other institutional investors are adjusting their holdings. Waypoint Wealth Counsel established a new position, purchasing 1,632 shares valued at roughly $387,400. Cromwell Holdings LLC increased its stake by approximately 38%, adding 131 shares to its portfolio.

However, a note of caution is emerging from some analysts. William Kerwin of Morningstar characterizes SanDisk as a company lacking a durable competitive advantage. He argues that flash memory chips are commodity products with little genuine pricing power. Historically, the industry has experienced repeated cycles swinging from shortage to oversupply—a pattern likely to repeat, in his view.

Bullish Forecasts and Lofty Guidance

Market research firm TrendForce anticipates NAND flash contract prices will jump between 55% and 60% in the first quarter of 2026. Analysts at Bank of America project a 45% revenue surge for the full year in the NAND business, supported by a 26% rise in average selling prices.

SanDisk’s own leadership has issued ambitious guidance. For the upcoming third fiscal quarter, management forecasts revenue in the range of $4.4 to $4.8 billion. Adjusted earnings per share are projected to land between $12 and $14, signaling another substantial leap. The central question for investors now is how long this AI-driven supercycle can support elevated pricing before new manufacturing capacity floods the market.