TLDR

Stanley Druckenmiller sold his entire Broadcom position and bought Sandisk stock in Q3 2025
Sandisk shares have surged 1,050% since spinning off from Western Digital in February 2025
Broadcom holds 75% market share in custom AI chips and generated $20 billion in AI revenue for 2025
Sandisk stock now trades at $413.62, up from around $58 when Druckenmiller purchased it in Q3
Analysts raised Sandisk price targets to $380-$450, though current valuation of 170x earnings appears high

Billionaire investor Stanley Druckenmiller made a major portfolio change in the third quarter of 2025. He sold his position in semiconductor giant Broadcom and started a new position in flash memory maker Sandisk.

The move represents an exchange of one AI-focused semiconductor company for another. Druckenmiller ran Duquesne Capital from 1981 to 2010, achieving 30% annual returns without a single down year. He now manages his personal wealth through Duquesne Family Office.

Sandisk has delivered returns of 1,050% since spinning off from Western Digital in February 2025. The stock traded around $58 per share during the third quarter when Druckenmiller bought it. Shares now trade at $413.62 as of January 16, 2026.

Sandisk Corporation, SNDK

Broadcom maintains a dominant position in three key semiconductor markets. The company controls wireless networking, Ethernet networking, and application-specific integrated circuits. Broadcom holds approximately 75% market share in AI ASICs, which are custom chips designed for training and running AI models.

The company’s AI revenue reached $20 billion in 2025, up 65% from the prior year. Broadcom designs custom AI accelerators for major tech companies including Google, Meta Platforms, OpenAI, and Anthropic. CEO Hock Tan has indicated strong growth ahead in data center infrastructure spending.

Flash Memory Demand Drives Sandisk Growth

Sandisk manufactures data storage products based on NAND flash technology for multiple industries. The company serves data centers, personal computers, mobile devices, gaming consoles, and automotive systems. Sandisk operates a strategic partnership with Japanese company Kioxia to share manufacturing and research costs.

Solid-state drives cost more than traditional hard-disk drives but offer faster speeds and better durability. These performance advantages make SSDs the preferred choice for AI model training and applications. Hard-disk drives remain common for long-term data storage where cost matters more than speed.

Sandisk ranks as the fifth-largest NAND flash memory manufacturer globally. The company trails Samsung, SK Hynix, Kioxia, and Micron Technologies in market share. However, Sandisk gained one percentage point of market share during the first half of 2025.

Two major cloud computing companies recently began testing Sandisk’s enterprise SSDs. A third hyperscaler and a major storage equipment maker plan to start testing in 2026. The company benefits from vertical integration across its supply chain, from chip design through final product manufacturing.

Analyst Price Targets Reflect Market Optimism

Wells Fargo raised its Sandisk price target to $380 from $230 in January 2026. The firm maintained an Equal Weight rating on the stock. Benchmark increased its target to $450 from $260 while keeping a Buy rating.

Benchmark cited NAND manufacturers’ restrained capacity expansion as a positive factor. The firm noted this approach differs from past cycles when companies aggressively added capacity. Benchmark expects chip prices to rise and drive margins to record levels through 2026 and 2027.

Wall Street projects Sandisk’s adjusted earnings will grow at 79% annually through fiscal year 2029. The stock currently trades at 170 times earnings. Broadcom trades at 51 times earnings with projected earnings growth of 43% annually through 2027.

The median analyst price target for Broadcom stands at $461 per share, representing 34% upside from its current price of $352.03. For Sandisk, the median target of $307 per share suggests 26% downside from the current price of $413.62.

The post Billionaire Druckenmiller Dumps Broadcom for Sandisk as Memory Stock Soars 1,000% appeared first on CoinCentral.

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Filed under: News - @ January 18, 2026 3:28 pm