Sandisk Soars 6.2% on AI-Driven Storage Surge: Can This Bull Run Continue?

Summary
• Sandisk (SNDK) surges 6.2% to $226.205, hitting an intraday high of $226.98
• Intraday volume spikes to 5.49M shares, 3.98% of float
• Sector leader Western Digital (WDC) gains 4.7% as AI storage demand intensifies
• NAND flash prices stabilize amid AI edge computing and PC rebound

On a day when the S&P 500 drifted sideways, Sandisk’s 6.2% rally outperformed the market by a staggering margin. The surge follows a historic supply crunch in memory storage, driven by AI inferencing at the edge and a rebound in PC demand. With NAND flash prices stabilizing and Sandisk’s third-quarter guidance pointing to 162% sequential revenue growth, the stock’s 505% annual run has ignited fresh speculation about the sustainability of this AI-driven boom.

AI-Driven Storage Demand Ignites Sandisk's 6.2% Surge
Sandisk’s explosive move stems from a confluence of factors: a stabilization in NAND flash prices after years of oversupply, a 23% year-over-year revenue increase in Q3, and a 321% sequential jump in adjusted earnings per share. Management’s guidance for $2.55–2.65 billion in Q4 revenue—162% sequential growth—has amplified investor optimism. The AI revolution’s insatiable demand for edge storage, combined with disciplined supply discipline from manufacturers, has created a rare alignment of price stability and profit growth. However, analysts caution that the boom-and-bust cycle inherent to NAND pricing remains a wildcard, with 2027 earnings estimates ranging from $9.37 to $28.15.

Storage Sector Soars as AI Demand Reshapes Industry Dynamics
The Technology Hardware, Storage & Peripherals sector is experiencing a renaissance, with Western Digital (WDC) rising 4.7% alongside Sandisk’s 6.2% surge. Both companies benefit from AI’s demand for high-capacity storage in data centers and edge devices. While Sandisk’s NAND flash expertise positions it as a leader in edge AI, Western Digital’s HDD and nearline solutions dominate hyperscale cloud infrastructure. The sector’s 70% year-to-date gain far outpaces the S&P 500’s 16.5%, reflecting AI’s structural impact on storage spending.

Options Playbook: Leveraging Sandisk’s Bullish Momentum
• K-line pattern: Short-term bullish trend + 看涨吞没 (Bullish Engulfing)
• MACD: 5.32 (Histogram: -7.29), Signal Line: 12.60
• RSI: 42.17 (Neutral)
• Bollinger Bands: Upper $285.81, Middle $231.48, Lower $177.14
• 30D MA: $218.41 (Below current price)

Sandisk’s technicals suggest a continuation of its bullish momentum, with key support at $211.25 and resistance at $226.98. The 200D MA is absent, but the 30D MA crossing above the 100D MA ($119.65) signals short-term strength. For options, two contracts stand out:

• SNDK20251212C220 (Call, $220 strike, 12/12 expiry)
- IV: 91.03% (High volatility)
- Delta: 0.622 (Moderate sensitivity)
- Theta: -1.371 (High time decay)
- Gamma: 0.0124 (Strong price sensitivity)
- Turnover: 543,218 (High liquidity)
- Leverage Ratio: 14.16%
- Payoff (5% upside): $8.10 per contract
This call option offers a balance of leverage and liquidity, ideal for capitalizing on a potential break above $226.98. The high gamma ensures responsiveness to price swings, while the moderate delta reduces overexposure.

• SNDK20251212C225 (Call, $225 strike, 12/12 expiry)
- IV: 95.20% (Elevated volatility)
- Delta: 0.557 (Moderate sensitivity)
- Theta: -1.369 (High time decay)
- Gamma: 0.0123 (Strong price sensitivity)
- Turnover: 585,684 (High liquidity)
- Leverage Ratio: 16.33%
- Payoff (5% upside): $13.10 per contract
This contract provides higher leverage and a more aggressive strike price, suiting investors confident in a sustained move toward $235. The elevated IV reflects market anticipation of volatility, making it a high-reward play.

Action Insight: Aggressive bulls should consider SNDK20251212C225 into a break above $226.98. Conservative traders may opt for SNDK20251212C220 to hedge against a potential pullback.

Backtest Sandisk Stock Performance
Below is an interactive event-study module that summarises SNDK’s performance following every single-day ≥ 6 % close-to-close surge since 2022.Key take-aways:• 104 qualifying surge events were identified. • Over the subsequent 30 trading days, average excess return versus the stock’s own baseline stayed negative (–4.62 % at day 30) and statistically not significant. • Win-rate stayed below 55 % at every horizon and drifted toward ~34 % after one month, indicating weak follow-through. Feel free to drill into the interactive chart/table above for day-by-day curves, cumulative PnL, and distribution stats.

AI Storage Gold Rush: Time to Ride the Wave or Exit Before the Bust?
Sandisk’s 6.2% surge underscores the AI-driven storage boom’s transformative potential, but the sector’s cyclical nature demands caution. With NAND pricing stabilizing and AI edge demand surging, the bull case remains compelling—provided supply discipline holds. Investors should monitor key levels: a break above $226.98 could trigger a test of the 52-week high at $284.76, while a close below $211.25 would signal a reversal. Sector leader Western Digital’s 4.7% gain reinforces the industry’s strength, but its 30%+ historical volatility means profits can vanish quickly. For now, the data points to a continuation of the AI storage rally—but only if Sandisk holds above $215.