SanDisk Corporation concluded Friday's trading session at $626.56, marking a decline of 0.6% following a day of notable price swings. The stock fluctuated between $586.37 and $661.50 during regular hours before rebounding 0.6% in after-hours activity to reach $630.02. U.S. equity markets remain closed on Monday in observance of Presidents Day, with normal operations resuming on Tuesday.
Volatility and AI-Driven Momentum
The storage technology firm has become a focal point for investors betting on artificial intelligence infrastructure, resulting in shares that are highly sensitive to shifts in market sentiment. This was evident in late January when the stock surged 14.7% on January 30. That rally was fueled by the company's updated fiscal third-quarter guidance, projecting revenue between $4.4 billion and $4.8 billion and adjusted earnings per share of $12 to $14.
Concurrently, SanDisk confirmed the extension of its flash memory supply agreement with Japan's Kioxia through 2034. Analysts at Morgan Stanley have indicated that the company's strong performance is sustainable as long as AI demand remains robust. Morningstar analysts, however, highlighted potential supply constraints that may not ease until 2028 at the earliest. The AI tailwind has benefited the broader sector, lifting peers including Western Digital, Seagate, and Micron.
Recent Financial Performance and Strategy
For its fiscal second quarter, reported on January 29, SanDisk posted revenue of $3.03 billion and adjusted earnings of $6.20 per share. Management reaffirmed its third-quarter outlook, the same projections that ignited the January rally. Chief Executive Officer David Goeckeler emphasized the company's commitment to disciplined growth through stricter supply management, describing it as a "structural reset to align supply with attractive, sustained demand."
Friday's trading activity underscored the stock's ongoing volatility, suggesting that a portion of recent buying interest may be cyclical rather than based on long-term business fundamentals.
Upcoming Economic and Corporate Catalysts
The trading week resumes with several potential market-moving events. U.S. retail sales data arrives on Tuesday, followed by industrial production figures and the release of the Federal Reserve's latest meeting minutes on Wednesday. Fourth-quarter GDP data is scheduled for Friday. These macroeconomic indicators frequently influence Treasury yields and, by extension, high-valuation technology stocks.
However, the primary focus for SanDisk and related semiconductor and memory equities is Nvidia's scheduled earnings conference call on February 25 at 2 p.m. Pacific Time. The chipmaker's fourth-quarter and full-year results are widely viewed as a critical barometer for AI infrastructure spending and its downstream effects on memory and storage demand.
Market Risks and Considerations
Despite the optimistic backdrop, risks persist. The memory industry is historically cyclical, and a faster-than-expected resolution to NAND flash shortages could pressure pricing and margins. Any deceleration in cloud and AI capital expenditure would also pose a significant challenge, particularly with current investor expectations at elevated levels.
As markets reopen Tuesday, traders will monitor whether SanDisk can maintain support above the $600 level following last week's turbulence. The period leading up to Nvidia's February 25 report is likely to be a key determinant of near-term direction for AI-exposed names across the technology sector.
