Prominent Short Seller Hindenburg: Shorting SanDisk, Current Memory Chip Market Boom a "Supply Mirage"

**Breaking News: Citron Calls SanDisk Overvalued, Cites Memory Cycle Peak Risks** Feb 24 – Noted short seller Citron released a report labeling SanDisk overvalued, drawing a contrast to NVIDIA: while NVIDIA has a competitive moat, SanDisk sells commoditized products. Days prior, Western Digital dumped a large stake at a 25% discount to market value—signaling veteran investors see the memory chip cycle peaking. Historical data shows memory market cycles peaked in 2008, 2012, and 2018; Citron argues SanDisk will not be an exception. Samsung, which has prioritized market share over margins for 30 years, is now pushing high-end SSDs directly to SanDisk’s key clients, pledging gross margins won’t fall below 50%. Citron dismisses SanDisk’s current supply crunch as a temporary capacity bottleneck—a “scarcity illusion” that could vanish at any point in an earnings call. The firm stresses shorting SanDisk is a pre-cycle-adjustment positioning play: by the time the memory market normalizes, SanDisk’s stock could already have dropped sharply.