Sandisk Surges 3.38% on AI-Driven NAND Demand, Hits 7.08% Intraday High

Sandisk (SNDK) surged 3.38% on Monday, extending its winning streak to 15 consecutive days with a cumulative gain of 108.34% over the period. The stock reached an intraday high of 7.08%, marking its highest level since September 2025. This momentum follows its spinoff from Western Digital in February 2025, which has redefined its market positioning as a standalone entity.

The rally is largely attributed to AI-driven demand for NAND flash memory. Analysts highlight growing enterprise SSD adoption, fueled by AI infrastructure expansion and HDD shortages. Sandisk’s BICS 8 manufacturing process is anticipated to scale in late 2025, potentially boosting its enterprise market share. Cloud sales, which accounted for 12% of revenue in H1 2025, are expected to benefit from heightened data center investments by major tech firms. Rising NAND pricing dynamics, driven by production constraints in China and robust consumer demand, further support Sandisk’s core business.

Recent analyst activity has amplified investor optimism. BofA Securities doubled its price target to $125, citing AI demand and data center growth, while Mizuho upgraded Sandisk alongside peers in the storage sector. Despite these bullish signals, the stock remains speculative due to its short standalone history and limited financial data. Technical indicators, including a near-overbought RSI and elevated moving averages, suggest continued volatility. Morningstar’s valuation assessment, however, warns the stock is “155% overvalued,” underscoring divergent market views.

Broader sector trends also bolster Sandisk’s performance. Storage stocks, including Western Digital and Seagate, have surged amid post-2022 hardware demand recovery. Tight supply conditions and shifting NAND demand from consumer to enterprise applications position Sandisk to capitalize on structural shifts. However, near-term earnings risks persist, with adjusted earnings in Q4 2025 declining 77% compared to pre-spinoff figures. Investors are advised to exercise caution, given the stock’s high volatility and reliance on technical momentum rather than fundamentals.