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Key Takeaways

• SanDisk Corp stock has surged 1015% over six months, driven by explosive demand for memory chips in AI systems
• The company recently posted a five-day winning streak with 30% gains, pushing its market cap to $74 billion and year-to-date returns to 112.1%
• Bernstein raised its price target to $580, citing severe NAND shortages and rising AI-driven demand
• Memory and storage companies like Micron, Western Digital, and SK Hynix have also tripled in value as AI requires vastly more memory than traditional software
• Supply constraints are expected to continue until at least 2028, with memory makers slow to build new factories despite surging demand

SanDisk Corp (SNDK) has posted returns that would make most investors do a double-take. The memory and storage maker jumped 1015% in just six months, turning what used to be a steady but unremarkable sector into one of the market’s hottest plays.
 

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Image Source: KnockoutStocks

The rally isn’t just random speculation. AI systems need memory chips to store and move massive amounts of data. These chips have become a bottleneck in the AI supply chain.

SanDisk’s latest run includes a five-day winning streak that added 30% to the stock price. That translates to roughly $17 billion in market cap growth, bringing the total to $74 billion. Year-to-date returns hit 112.1%, while the S&P 500 managed just 1%.

Bernstein analysts bumped their price target to $580, pointing to severe NAND shortages and accelerating demand from AI applications. The firm noted that supply hasn’t caught up with the new reality of AI workloads.

The pattern extends beyond SanDisk. as Micron Technology, Western Digital, and SK Hynix have all roughly tripled since last August. These companies make the fast memory chips that work alongside Nvidia processors in AI data centers.

The Memory Wall Hits AI

Nvidia CEO Jensen Huang framed the opportunity in stark terms. He suggested that “holding the working memory of the world’s AIs” could become “the largest storage market in the world.” That’s not just marketing talk. AI models process exponentially more data than traditional software. They need memory chips that can keep up with processing speeds, and those chips remain in short supply.

Arm Holdings CEO Rene Haas put it more bluntly. The use of high-speed memory in AI has “just exploded,” he said, describing demand as an “insatiable need.”

Supply isn’t responding quickly. Memory manufacturers learned hard lessons from previous boom-bust cycles. They’re cautious about building new factories, which cost billions and take years to complete. Some analysts expect shortages to persist until 2028 at the earliest.

Investors Rotate Into Memory Plays

The broader AI trade is shifting. Nvidia stock sits about 11% below its October peak. Among major data center operators, only Alphabet has hit new highs since November. Money is seemingly flowing toward companies that solve specific AI bottlenecks instead. Memory makers fit that profile perfectly.

Arun Sai of Pictet Asset Management noted that the AI story has moved toward memory as the primary constraint on future spending. The market has become more selective, focusing on companies with clear competitive positions.

Hedge funds spotted this early. DE Shaw raised positions in SanDisk, Micron, Seagate, and Western Digital last year. Those bets are now worth approximately $3.9 billion more. Arrowstreet and Renaissance Technologies also booked large gains from similar trades.

The memory sector’s performance shows how quickly narratives can shift in tech investing. Companies that seemed stuck in commodity cycles are now viewed as critical infrastructure for AI development.

SanDisk’s recent five-day streak added momentum to an already strong run. Trading volume spiked as the price climbed, suggesting broad participation rather than just a few large buyers. The company’s market cap expansion similarly reflects real changes in how investors value memory makers. These aren’t just cyclical plays anymore. They’re seen as essential pieces of AI infrastructure that’s still being built out.

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