TLDRs
- Sandisk surged 14.5% as AI semiconductor demand reignited market momentum.
- Chip sector rally lifted SNDK to a new 52-week high near $1,895.
- Strong earnings and data center growth fueled investor confidence.
- Nasdaq-100 inclusion and analyst upgrades reinforced bullish outlook.
Sandisk Corporation (NASDAQ: SNDK) staged a powerful breakout on Thursday, surging 14.5% to close at $1,881.51 after briefly touching a new 52-week high of $1,895.00.
The rally was not isolated. The semiconductor space experienced one of its strongest single-day performances in over a year, with the PHLX Semiconductor Index climbing 7.9% in its biggest advance since April 2025. The rebound followed a period of weakness in chip stocks, suggesting renewed confidence in AI-driven demand cycles.
Chip Sector Rebound Accelerates
https://sandisk.com/QuantScraper/status/2065282918885249230
The broader semiconductor recovery played a critical role in Sandisk’s breakout. Industry peers also surged, with Micron Technology jumping double digits and Western Digital posting strong gains. Market participants pointed to renewed optimism around AI infrastructure spending, particularly in high-performance memory and storage solutions.
According to market commentary, investors are increasingly viewing pullbacks in chip stocks as buying opportunities rather than signs of structural slowdown. This sentiment shift helped fuel aggressive accumulation in AI hardware names, especially those tied to data center expansion and memory pricing recovery.
Record Revenue Momentum Builds
Fundamentals further supported the rally. Sandisk’s recent quarterly performance highlighted a dramatic acceleration in growth, with revenue reaching $5.95 billion, marking a 97% increase from the prior quarter and a 251% jump year-over-year. Data center revenue surged 233% sequentially to $1.467 billion, underscoring strong enterprise demand.
Profitability also strengthened significantly, with GAAP net income reported at $3.615 billion and non-GAAP diluted earnings per share at $23.41. These figures reinforced the company’s position as a key beneficiary of the AI-driven storage cycle, particularly as hyperscale data center customers expand capacity.
Wall Street Raises Targets
Investor sentiment was further boosted by bullish analyst activity. Bank of America maintained a Buy rating on Sandisk while raising its price target to $2,100 from $1,550, citing improving memory pricing conditions and long-term contracted supply agreements.
Analysts broadly remain optimistic despite some divergence in expectations. Out of 16 analysts tracked, 14 maintain Buy ratings while only 2 hold neutral positions. The average 12-month price target sits slightly below recent closing levels, but the upper end of forecasts stretches as high as $3,250, reflecting strong long-term confidence in AI memory demand.
Nasdaq-100 Inclusion Boost
Adding to the bullish narrative, Sandisk is set to join the Nasdaq-100 index, replacing Atlassian following a scheduled reconstitution. The inclusion is expected to increase passive inflows as more than $600 billion in assets track the benchmark globally.
However, investors remain focused on execution risks ahead. The company’s guidance for fiscal fourth-quarter revenue ranges between $7.75 billion and $8.25 billion, with non-GAAP EPS projected between $30 and $33. Margins are expected to remain elevated at 79% to 81%, but sustainability will depend heavily on NAND pricing stability and continued AI infrastructure demand.
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