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SanDisk Extends 2026 Rally on AI Storage Boom and Tight NAND Pricing

The rally rests on expectations of tight NAND pricing driven by AI demand despite weak profits.

Overview

  • SanDisk shares have jumped roughly 55% over the past month, keeping the stock among the S&P 500’s top performers to start 2026 after leading the index in 2025.
  • The surge accelerated after Nvidia’s Jensen Huang labeled memory and storage the largest unserved need in AI at CES, prompting an intraday gain of about 28%.
  • TrendForce forecasts contract SSD prices will increase at least 40% quarter over quarter in the first quarter of 2026, signaling constrained NAND supply.
  • The company’s 2025 spin-off and S&P 500 inclusion have driven index buying and momentum trading, with heavy retail and quant participation and frequent 20% single-day moves.
  • Latest reported results showed revenue up 23% to $2.3 billion with net income down 47%, while analysts diverge, as Bank of America raised its target to $390 and JPMorgan kept a Neutral rating at $235.