SanDisk Corp. (SNDK) shares are taking a little breather Monday, slipping after a monster rally that pushed the stock to all-time highs above $1,560. The move lower looks like plain old profit-taking — investors pulling some chips off the table after the stock surged over 12% on Friday alone.
But don't let the red day fool you. SanDisk has been on an absolute tear since its spin-off from Western Digital Corp. (WDC) in February 2025, gaining a staggering 4,086%. The company has become the poster child for the AI storage narrative, and the market has rewarded it handsomely.
Profit-Taking Hits Record Highs
The current decline appears driven by investors pulling capital off the table. Despite the dip, the stock remains in a strong upward trend. SanDisk has dominated the AI storage narrative, gaining 4,086% since its February 2025 spin-off from Western Digital Corp.
Short Interest and Burry's Warning
Short interest recently increased from 8.06 million to 9.75 million shares. This represents 10.33% of the float.
Adding to the tension, Michael Burry — the investor famous for betting against the housing market before the 2008 crash — noted on X that the surge is "more extreme" than the 1999 dot-com bubble. Burry stated, "SNDK is beating that by 1300bps," referring to Qualcomm Inc. (QCOM) and its dot-com era records. That's a pretty stark comparison, and it's worth paying attention to.
The AI Memory Bottleneck
SanDisk reported third-quarter revenue of $5.95 billion, up 251% year-over-year. That's not a typo — 251%.
Analysts like Amit Daryanani of Evercore ISI recently praised the company's 80% gross margins. Tightness in NAND supply is expected to extend into 2028, which means SanDisk could keep printing money for a while.
SanDisk Stock: Key Levels and Momentum Analysis
From a trend perspective, the stock remains firmly bullish: it's trading 41.2% above its 20-day SMA ($1,087.09) and 296.9% above its 200-day SMA ($386.82). The 20-day SMA is also above the 50-day SMA, and the 50-day SMA is above the 200-day SMA — that's the textbook definition of a strong uptrend.
Momentum is the bigger near-term issue than trend, with RSI at 79.77. Anything above 70 is considered overbought, so the stock could be due for a pullback or consolidation.
- Key Resistance: $1,564
- Key Support: $1,087.09
SanDisk Price Action
SNDK Price Action: SanDisk shares were down 1.37% at $1,540.96 at the time of publication on Monday. The stock is trading near its 52-week high of $1,564.00.
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