--- title: "One Year After Spin-off, Sandisk Overtakes Former Parent: Market Cap Now $40 Billion Higher Than Western Digital" type: "News" locale: "en" url: "https://longbridge.com/en/news/285323715.md" description: "Just over a year after spinning off from Western Digital, Sandisk's market cap has strongly surpassed that of its former parent company by more than $40 billion. Its stock price has surged cumulatively by 2,794%, breaking through the $200 billion mark for the first time. The explosive expansion of AI infrastructure, coupled with persistent supply shortages, has driven a revaluation of flash memory value. Multi-year customer fixed-price agreements with minimum commitments reaching $42 billion have significantly enhanced Sandisk's earnings visibility" datetime: "2026-05-06T06:44:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285323715.md) - [en](https://longbridge.com/en/news/285323715.md) - [zh-HK](https://longbridge.com/zh-HK/news/285323715.md) --- # One Year After Spin-off, Sandisk Overtakes Former Parent: Market Cap Now $40 Billion Higher Than Western Digital Sandisk has completed a textbook case of value revaluation. The flash memory chip company, which spun off from Western Digital just last year, now has a market capitalization that fully surpasses its former parent, with a gap exceeding $40 billion. As of Tuesday's close, Sandisk's market cap reached $208.26 billion, breaking through the $200 billion threshold for the first time, while Western Digital's market cap stood at $160.37 billion. Since the spin-off in February last year, Sandisk's stock price has surged cumulatively by 2,794%, compared to an 849% increase for Western Digital over the same period. The explosion in storage demand driven by artificial intelligence, along with persistent supply shortages, has been the core driver behind the significant valuation leaps for both companies. At the time of the spin-off, Western Digital had a market cap of approximately $17 billion, while Sandisk was valued at around $7 billion. In just over a year, both companies have achieved dramatic market cap expansions, but Sandisk's rise has been more aggressive, completing a full overtaking of its former parent. ## Spin-off Logic Realized, Flash Memory Business Value Revalued Western Digital spun off Sandisk for listing last February, with the initial intention of separating the flash memory and hard disk drive businesses to allow their respective values to be more fully priced by the market. Sandisk primarily deals in NAND flash memory products, a sector with higher market volatility. Previously, as part of a diversified group, its growth potential was somewhat undervalued. **Following its independent listing, as the pace of AI infrastructure construction accelerated, market demand for flash memory products surged sharply, allowing Sandisk's valuation logic to be repriced.** Currently, Sandisk's market cap has placed it among well-known U.S. corporations. According to Dow Jones Market Data, companies with similar market caps include McDonald's (approximately $203 billion), Verizon Communications (approximately $198 billion), and PepsiCo (approximately $212 billion). ## AI Demand and Supply Shortages Jointly Support High Price Levels Driving the soaring valuations of both Sandisk and Western Digital is a rare situation in the storage industry characterized by rising volumes and prices. The large-scale deployment of artificial intelligence has significantly boosted demand for flash memory and hard drive products. Companies such as Sandisk, Western Digital, Micron Technology, and Seagate Technology have all leveraged this trend to substantially increase product selling prices. Meanwhile, the supply shortage is expected to persist for months or even years, providing support for high prices. ## New Business Model Reduces Cyclical Volatility, Enhances Earnings Visibility Last week, Sandisk disclosed that it is shifting to a "multi-year customer agreement" business model, requiring customers to provide clear financial commitments to enhance earnings stability and reduce cyclical volatility. The company signed three customer agreements in the previous quarter and added two more in the current quarter ending in June. Jefferies analyst Blayne Curtis pointed out in a research note last Friday that **the new model provides clearer business visibility for Sandisk and investors.** He stated that the three agreements signed in the previous quarter represent a "minimum value" of $42 billion, a figure that is expected to grow "substantially" as storage supply remains tight. He also noted that these agreements are a "strong signal that hyperscale cloud computing customers are willing to sign contracts at high prices." Bernstein analyst Mark Newman believes that long-term agreements help achieve "long-term stability," with lower cyclicality bringing "considerable economic benefits over a longer time horizon," rather than being limited to single-quarter performance. ### Related Stocks - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [WDC.US](https://longbridge.com/en/quote/WDC.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [MCD.US](https://longbridge.com/en/quote/MCD.US.md) - [VZ.US](https://longbridge.com/en/quote/VZ.US.md) - [PEP.US](https://longbridge.com/en/quote/PEP.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [STX.US](https://longbridge.com/en/quote/STX.US.md) - [JEF.US](https://longbridge.com/en/quote/JEF.US.md) - [AB.US](https://longbridge.com/en/quote/AB.US.md) - [SNDKV.US](https://longbridge.com/en/quote/SNDKV.US.md) - [WDCVV.US](https://longbridge.com/en/quote/WDCVV.US.md) ## Related News & Research - [The latest sign of Sandisk's ascent: It's now bigger than Western Digital, which spun it off](https://longbridge.com/en/news/285267162.md) - [How Investors Are Reacting To Western Digital (WDC) AI-Driven Storage Demand After Seagate’s Beat](https://longbridge.com/en/news/284705552.md) - [Top Western Digital Executive Makes Major Insider Move](https://longbridge.com/en/news/285296400.md) - [Is Sandisk Stock a Buy on Surging Revenue and New Contract Structures?](https://longbridge.com/en/news/285226315.md) - [Is Wall Street Bullish or Bearish on Western Digital Stock?](https://longbridge.com/en/news/285197669.md)