New Delhi, Aug. 29 -- SanDisk Corp. SNDK closed Friday at $979.07, a number that would have seemed improbable eighteen months ago when the company was a freshly separated division of Western Digital Corp. trading near $38 a share. It still raises eyebrows. The stock is down 25 percent from its August highs, and the argument over whether that pullback is a buying opportunity or a valuation correction does not yet have a clean resolution.

the thumb drives, the SD cards, the portable SSDs - but the business underneath it had shifted decisively toward enterprise and AI infrastructure customers long before the spinoff occurred. Investors who held Western Digital through the separation and kept their SanDisk shares have not suffered. The gains...