TLDR
- Billionaire Stanley Druckenmiller dumped Broadcom shares and purchased Sandisk stock during Q3 2025
- Sandisk has climbed 1,050% since its February 2025 spinoff from Western Digital
- The memory chip maker now trades at $413.62, up from $58 when Druckenmiller bought in
- Broadcom dominates AI chip market with 75% share and $20 billion in 2025 AI revenue
- Analysts set Sandisk targets between $380-$450 despite high valuation of 170x earnings
Star investor Stanley Druckenmiller executed a major semiconductor swap in the third quarter of 2025. The billionaire sold his entire Broadcom stake and purchased shares of flash memory company Sandisk. The move has drawn attention from investors tracking the legendary fund manager’s portfolio changes.
Druckenmiller built his reputation managing Duquesne Capital from 1981 through 2010. The hedge fund posted 30% annual returns during that period without recording a single losing year. He now oversees his personal fortune through Duquesne Family Office.
Sandisk shares have exploded higher since the company separated from Western Digital in February 2025. The stock has delivered a 1,050% return in less than a year. When Druckenmiller bought during the third quarter, shares traded near $58. The stock now changes hands at $413.62.
Broadcom’s AI Chip Dominance
Broadcom operates as a leader in three semiconductor categories: wireless chips, Ethernet networking, and custom AI processors. The company commands roughly 75% of the market for AI ASICs. These specialized chips handle artificial intelligence training and inference workloads.
Major technology companies rely on Broadcom’s custom chip designs. Google, Meta Platforms, OpenAI, and Anthropic all use Broadcom AI accelerators in their data centers. The company generated $20 billion in AI-related revenue during 2025, marking 65% growth year-over-year.
Industry analysts project strong continued growth for Broadcom’s AI business. Beth Kindig at the I/O Fund expects AI sales to triple by 2027. Harlan Sur at JPMorgan Chase forecasts AI revenue reaching $110 billion by 2027. Wall Street sees Broadcom earnings growing 43% annually through 2027.
The stock trades at 51 times forward earnings. Analysts maintain a median price target of $461 per share, implying 34% upside from the current $352.03 price.
Sandisk Flash Memory Opportunity
Sandisk produces NAND flash memory storage solutions for data centers, computers, mobile devices, and other applications. The company partners with Japanese firm Kioxia to share manufacturing and development costs. This arrangement helps Sandisk compete with larger rivals Samsung, SK Hynix, and Micron.
Flash-based solid-state drives cost more than traditional hard drives but offer superior speed and durability. These characteristics make SSDs essential for AI applications where performance matters most. Sandisk ranks fifth globally in NAND flash production but gained market share during the first half of 2025.
Two hyperscale cloud providers recently started testing Sandisk enterprise SSDs. A third major customer plus a storage equipment maker will begin trials in 2026. Management expects these partnerships to drive future revenue growth.
Wall Street projects 79% annual earnings growth for Sandisk through fiscal 2029. The stock trades at 170 times earnings following its rapid price appreciation. Wells Fargo raised its price target to $380 in January 2026. Benchmark lifted its target to $450, citing disciplined capacity expansion by NAND manufacturers.
Benchmark analysts noted that memory chip makers are avoiding the aggressive capacity additions seen in previous cycles. This restrained approach could support higher chip prices and profit margins through 2026 and 2027. The firm expects forward price-to-earnings ratios in the 13-14x range as fundamentals improve.
