Billionaire Israel Englander is exiting his Sandisk position and moving into Everpure, signaling concern that the memory chip industry's current boom—driven by AI infrastructure demand—may not sustain valuations. While Sandisk has surged 3,600% in a year on strong enterprise SSD sales, Wall Street expects memory chip demand to weaken in 2028 as supply catches up, making Everpure's lower valuation and software-focused storage approach appear more defensible over the long term.
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Billionaire Israel Englander, CEO of Millennium Management, sold 1.1 million Sandisk shares (cutting his position by 24%) and bought 343,000 Everpure shares (increasing his position by 60%) in the first quarter. Sandisk shares have advanced 3,600% in the past year, while Everpure shares have added 36%.
Why it matters
The memory chip industry is cyclical, with upswings driven by strong demand followed by inevitable downturns as supply catches up. Wall Street analysts expect memory chip sales to drop in 2028, and Sandisk's adjusted earnings are forecast to grow at only 25% annually through fiscal 2029—making its current valuation of 56 times earnings expensive by comparison. Everpure, valued at 36 times earnings with projected annual earnings growth of 21% through fiscal 2028, appears better positioned to sustain momentum as the AI boom unfolds.
What to watch
Sandisk reported jaw-dropping third-quarter results (ended March) with revenue up 251% to $5.9 billion（約9400億円） and non-GAAP net income of $23.41 per diluted share. Everpure reported first-quarter results (ended May) with revenue up 35% to $1.1 billion（約1800億円）, operating margin increased five percentage points, and non-GAAP net income up 62% to $0.47 per diluted share.
The memory chip industry has historically alternated between upswings—defined by strong demand and price increases—and downturns—defined by supply gluts and price cuts. The body notes that NAND prices tripled in the past year amid intense demand for AI infrastructure, putting the industry in an upswing. However, this pattern suggests the next downturn is inevitable.
Englander's trade reflects a bet on timing and valuation. Sandisk has delivered extraordinary results: in its third quarter (ended March), revenue jumped 251% to $5.9 billion（約9400億円）, driven by particularly strong demand for enterprise SSDs, and non-GAAP net income rose to $23.41 per diluted share from a loss of $0.30 per diluted share the prior year. Yet Wall Street's consensus estimate projects that Sandisk's adjusted earnings will grow at 25% annually through fiscal 2029, which the body describes as making the current valuation of 56 times earnings "look expensive." Englander's sale suggests he believes the current valuation already prices in much of this growth.
Everpure, by contrast, appears less bid-up on similar fundamentals. It reported first-quarter results with revenue up 35% to $1.1 billion（約1800億円） and non-GAAP net income up 62% to $0.47 per diluted share, while operating margin expanded five percentage points despite soaring memory prices—a sign of improving operational efficiency. Wall Street estimates its adjusted earnings will grow at 21% annually through fiscal 2028, yet it trades at only 36 times earnings. Gartner recently recognized Everpure as a leader in enterprise storage platforms, and the company is beginning to displace AI storage products in the enterprise and neo-cloud markets, according to its CEO. This suggests a company in the early phase of gaining traction within AI infrastructure, with room for appreciation if the AI boom continues—but at a more conservative valuation than Sandisk.
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