Sandisk Corp (SNDK) shares surged approximately 8% on Wednesday, reaching a new all-time intraday high of $1,861.00. The stock closed at $1,856.88, up $140.52 from the previous session, as investors continued to pile into AI-driven storage plays despite a broader market downturn.
The rally comes amid a wave of enthusiasm for memory and storage stocks, fueled by insatiable demand from artificial intelligence data centers. Sandisk, a leading manufacturer of flash memory and solid-state drives, has become a bellwether for the AI storage theme, with its products essential for high-speed data processing in servers and consumer electronics.
Morgan Stanley issued a note highlighting that memory-chip prices have surged sixfold over the past year, driven by AI infrastructure demand that is squeezing supply and pushing producers toward higher-margin data-center chips. The bank cautioned that price increases are now spreading beyond data centers into other segments, calling the supply crunch a potential macroeconomic concern. This has prompted downstream hardware makers to either absorb higher costs, pass them on to consumers, redesign products, or risk losing market share.
Sandisk's latest financial results underscore the strength of this trend. The company reported fiscal third-quarter revenue of $5.95 billion on April 30, a staggering 97% increase from the prior quarter, with data-center sales soaring 233%. Management guided for fiscal fourth-quarter revenue between $7.75 billion and $8.25 billion, and non-GAAP earnings per share of $30 to $33. Chief Executive David Goeckeler described the quarter as a fundamental inflection point, as the company pivots toward higher-value end markets, particularly data centers.
The broader chip sector outperformed the declining S&P 500 and Nasdaq, which were weighed down by rising oil prices and geopolitical tensions in the Middle East. Sandisk was among the top gainers, alongside peers Micron Technology (MU), which rose about 2.1%, and Western Digital (WDC), which gained nearly 6%. The divergence underscores the market's belief that AI-related demand remains insulated from broader economic headwinds.
Sandisk became a standalone public company in February 2025 after splitting from Western Digital. The stock now has a market capitalization of approximately $292 billion, with about 10.1 million shares traded on Wednesday, in line with its recent average volume. Short interest stood at 9.14 million shares as of May 15, representing 6.18% of the float, indicating a notable level of bearish positioning.
Investors will get further insight into pricing dynamics and demand trends at the upcoming Mizuho Technology Conference on June 9, where Sandisk management is scheduled to present via webcast. The company has also highlighted recent progress in business-model agreements, closing three by the end of the fiscal third quarter and adding two more in the current quarter.
While the near-term outlook remains bullish, analysts caution that the AI memory trade is becoming crowded. Any signs of supply catching up, a slowdown in AI investment, or customer resistance to higher prices could trigger a sharp reversal. With the stock trading at elevated levels, there is limited cushion for a pullback, leaving investors exposed to potential downside if the narrative shifts.
