SanDisk Corp (NASDAQ:SNDK) shares are rallying on Monday, extending their 2026 breakout. The stock is up more than 159% year-to-date and has surged 1,184% over the past 12 months.
Institutional Shift to AI Hardware
According to Lucas Downey, co-founder of MoneyFlows.com, “big money” is deserting software-as-a-service (SaaS) in favor of physical infrastructure. This trend favors memory leaders like SanDisk.
Downey noted in a Schwab Network interview that money has been “literally nonstop” flowing into the sector.
The performance gap is significant. While SanDisk has surged, the iShares Expanded Tech-Software Sector ETF (BATS:IGV) has cratered 17.33% this year. Downey attribute this to a two-year “bottleneck” in AI chips and storage.
Explosive Fundamentals Drive Gains
SanDisk’s revenue is projected to double to $15.2 billion in 2026. Operating income is expected to hit $7 billion, a tenfold increase from 2025.
Goldman Sachs analyst Ryan Hammond noted that memory stocks trade at a discount. SanDisk trades at just 8.8 times forward earnings. This is well below the broader market average.
Navigating Volatility and Competition
The rally follows a turbulent period. On March 3, shares dipped during a tech selloff fueled by Middle East tensions and rising oil prices. Additionally, Citron Research on Feb. 26 announced a short position, arguing the NAND cycle is peaking.
Citron, led by founder Andrew Left warned that Samsung Electronics Co Ltd (OTCPK: SSNLF) remains a core threat. “Samsung has a 30-year history of choosing market share over margins,” Citron wrote.
Price Action: SanDisk shares were up 8.06% at $714.95 on Monday afternoon, according to Benzinga Pro data.
Photo: Tutik_P / Shutterstock
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