[Goldman Sachs: SanDisk's Performance Exceeds Expectations, but Guidance Falls Short of Most Optimistic Projections; Initiates Coverage with a Buy Rating] According to Deep Tide TechFlow, citing research from Tide Research, SanDisk reported Q2 revenue of $8.97 billion, exceeding Goldman Sachs' expectations by 1.4% and market expectations by 2.9%. The gross margin was 84.6%, and non-GAAP earnings per share (EPS) were $39.25. For Q3, revenue guidance midpoint is $10.55 billion, which is 9.5% below Goldman Sachs' expectations and 5.4% below market expectations. The gross margin guidance of 84% is 267 basis points lower than market expectations, while the EPS guidance midpoint of $45 aligns with market expectations but falls short of Goldman Sachs' $49.95 estimate. The stock price has retraced 40% from its June high. In its initial coverage report on August 5, Goldman Sachs assigned a Buy rating with a target price of $2,200, implying approximately 54% upside potential. Goldman Sachs believes the negative reaction following the earnings report is primarily due to adjustments in expectations rather than a deterioration in fundamentals. The demand for NAND in AI data centers is forming a new growth curve, and newly signed long-term agreements are improving revenue visibility. Goldman Sachs maintains a Neutral rating on Micron, noting that SanDisk's weak guidance is likely to also weigh on Micron, as the two companies have highly overlapping end-market demand in the NAND storage market.