SanDisk (SNDK) Surges 9.68% on Upgraded RS Rating, Hits 2025 High Amid Tech Rally

Sandisk (SNDK) surged 9.68% on Thursday, marking its third consecutive day of gains and a 34.23% rally over the past three days. The stock reached its highest level since September 2025, with an intraday high of $62.50, reflecting renewed investor confidence in the memory solutions provider.

The momentum is partly attributed to an upgraded Relative Strength (RS) Rating, which climbed from 82 to 91, signaling outperformance against peers. This aligns with broader market enthusiasm for tech stocks, particularly those demonstrating resilient revenue growth. Despite historical challenges, including a 25% revenue decline over three years, recent projections suggest a modest 7% annual growth outlook, outpacing industry averages.

However, institutional caution persists. Loomis Sayles, a major investor, recently exited its position, citing concerns over tariffs impacting consumer electronics and data storage markets. The firm’s decision underscores macroeconomic risks, as rising tariffs could compress profit margins for companies reliant on global supply chains. This exit contrasts with a near-unanimous analyst consensus of "Strong Buy" ratings, with a 12-month average price target of $58.08, already surpassed by the current stock price.

While short-term optimism prevails, long-term uncertainties linger. Analysts highlight the tension between Sandisk’s current valuation—slightly below the tech sector’s median price-to-sales ratio—and its historical revenue volatility. Additionally, the shift in investor capital toward AI-focused firms poses competitive challenges, as demand for traditional storage solutions faces headwinds from emerging technologies. Navigating these dynamics will be critical for sustaining the recent rally amid evolving market conditions.