Sandisk (SNDK) Surges 3.44% as AI Demand and Strategic Moves Drive Three-Day Rally to 2025 High

Sandisk (SNDK) surged 3.44% on Thursday, marking its third consecutive day of gains and pushing the stock to its highest level since October 2025, with an intraday high of $132. The rally has lifted shares by 14.45% over three days, reflecting renewed investor confidence in the company’s strategic positioning amid AI-driven demand for storage solutions.

The stock’s upward momentum is closely tied to the expanding AI infrastructure market, which is fueling surging demand for NAND flash memory and solid-state drives (SSDs). Sandisk’s data-center revenue has nearly doubled year-over-year, now accounting for 12% of total sales, as hyperscale operators prioritize high-capacity storage for AI workloads. Analysts highlight the company’s role as a key supplier to cloud providers, with recent product launches like 4TB SSDs and 2TB microSD cards addressing growing needs in gaming and next-generation computing.

Operational expansion has further bolstered Sandisk’s outlook. The company’s joint venture with Kioxia to launch Fab2 in Japan in September 2025 has enhanced production capacity for 218-layer 3D NAND chips, critical for AI applications. This strategic move aligns with broader industry trends, as PC and enterprise SSD shipments rebounded in Q2 2025, supported by inventory restocking by mobile OEMs. The facility’s focus on high-density flash memory positions Sandisk to meet tightening supply constraints in the sector.

Strategic repositioning has also played a pivotal role. Following its spin-off from Western Digital in February 2025, Sandisk operates as a pure-play NAND and SSD manufacturer, allowing it to focus exclusively on high-growth areas. The move has attracted institutional attention, with the stock’s inclusion in the Bloomberg US 500 index in September 2025. CEO David Goeckeler has emphasized the company’s alignment with long-term AI and cloud infrastructure trends, reinforcing investor optimism.

Analyst sentiment remains overwhelmingly positive. Citigroup raised its price target to $125 in late September, while Bank of America and Jefferies maintained “Buy” ratings. With 13 analysts covering the stock, the consensus reflects confidence in Sandisk’s ability to capitalize on AI-driven demand and improve margins. Recent financial results, including a 12% sequential revenue increase in Q2 2025 and rising gross margins, further validate its operational strength.

Sector-wide tailwinds and investor participation have amplified Sandisk’s momentum. As a “pick-and-shovel” play in the AI boom, the stock has drawn attention as data-center spending accelerates. Strategic events, such as presentations at industry conferences, have also reinforced the company’s visibility. While risks like industry cyclicality remain, Sandisk’s current trajectory underscores its leadership in a rapidly evolving market.