Jim Cramer Wondered Whether Sandisk Is No Longer Cyclical & Expected Western Digital To Raise Guidance More

Sandisk Corporation (NASDAQ:SNDK) and Western Digital Corporation (NASDAQ:WDC) are two of the strongest-performing stocks in today's AI era. The two companies' shares are up 455% and 159% year-to-date, respectively. Both of the firms' shares have responded to the aggressive demand for their storage products stemming from the multi-billion-dollar artificial intelligence infrastructure buildout.

However, Western Digital Corporation (NASDAQ:WDC)'s shares closed 13% lower and Sandisk Corporation (NASDAQ:SNDK) dipped by 6.8% on August 6th, the day Cramer made the following remarks. As part of his comments, the CNBC TV host also discussed Melius Research's Ben Reitzes' comments about Sandisk Corporation (NASDAQ:SNDK): 'Western Digital, you know what they did not raise like I thought they would, Sandisk, they did not raise like I thought they would. You put them all up and they're all the same.

These are all the same stocks to some degree. They're just momentum stocks, that people think, you know what, aren't so good. "Yeah and I read his, and you know, Ben's been right about a lot of this stuff.

And by the way, Ben came on to say this, everyone said that it had moved too much, and he just went right there and said, you should buy it, that was good. But this again, when I look over these, a lot of these guys have done LTAs, new business models. These are the things people talk about.

And the LTAs are basically, look, we gave a contract to a manufacturer. And the first quarter's not going to be as good but we're no longer cyclical. I do like that." Cramer comments about Western Digital Corporation (NASDAQ:WDC) came after the firm reported its fiscal fourth quarter earnings report.

It posted $3.75 billion in revenue and $3.56 in earnings per share to beat analyst estimates of $3.69 billion and $3.30. However, as Cramer remarked, Western Digital Corporation (NASDAQ:WDC) did not impress investors with its guidance, even though its Q1 midpoint revenue guide of $4.1 billion was a hairline higher than analyst estimates of $4.04 billion, while $4 in profit per share guide was also higher. As for Sandisk Corporation (NASDAQ:SNDK), the firm's revenue and profit of $8.97 billion and $39.25 per share beat analyst estimates of $8.39 billion and $34.45.