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Sandisk Corporation (Sandisk (SNDK)) shares climbed nearly 3% in Thursday's premarket session, riding a wave of improving risk appetite that lifted technology stocks across the board. Nasdaq futures were up 1.19%, and the S&P 500 futures gained 0.57%.
The move also comes less than a week before the company's earnings report, when trading activity often becomes more sensitive as investors position for quarterly results. Sandisk is scheduled to report on Aug. 5.
Despite a recent pullback in the semiconductor sector, analysts remain constructive on the long-term outlook for memory-chip makers. Wolfe Research senior analyst Chris Caso told CNBC on Wednesday that the semiconductor pullback reflects a reset in expectations after a sharp rally — the SOXX index doubled over roughly three months before falling about 25% from its high.
Caso said memory suppliers remain severely supply constrained because they cannot quickly increase output, which supports Wolfe's bullish view on the group. He also said oversupply risk looks distant because the industry lacks enough physical space to produce the semiconductors customers want. Any potential oversupply cycle may not emerge before 2028 at the earliest, because new capacity requires new buildings that take time to complete.
Susquehanna senior equity research analyst Mehdi Hosseini told CNBC on Tuesday that investors should stay patient with memory stocks after the recent pullback. He said the next phase depends on whether commodity memory prices can move sideways or roll over like they have in past cycles.
Hosseini said the "easy money" in memory stocks has largely been made, although he remains constructive on the industry's longer-term outlook. For investors without exposure to the sector, he recommended waiting rather than chasing recent weakness. "I think you're going to have better pricing over the next month or two," he said, adding that investors typically return to the memory sector in late summer.
While memory stocks have surrendered a significant portion of their recent gains over the past month, Hosseini noted they continue to outperform levels seen three months ago. The comments come after a volatile month for memory-chip makers, including Sandisk, as investors reassess whether pricing gains fueled by artificial intelligence demand can continue.
Sandisk remains above its longer-term trend indicators, with the stock trading above both its 200-day simple moving average of $831.87 and its 200-day exponential moving average of $999.78. That suggests the longer-term uptrend remains intact.
However, near-term momentum has weakened. The stock trades 33.2% below its 20-day simple moving average of $1,573.51 and 38.6% below its 50-day simple moving average of $1,713.65. The moving averages also reflect mixed signals: the 20-day simple moving average remains below the 50-day simple moving average, a bearish short-term indicator, while the 50-day average remains above the 200-day average, supporting the longer-term bullish trend.
Momentum indicators also remain soft. The moving average convergence divergence (MACD) indicator sits below its signal line, while the histogram remains negative, suggesting buying momentum has weakened. Traders are likely watching the 200-day moving average as a key support level. On the upside, the stock's 52-week high of $2,354.39 remains the primary resistance level.
Sandisk is scheduled to report quarterly results on Aug. 5. Wall Street expects earnings of $33.38 per share, up from 29 cents a year earlier, on revenue of $8.24 billion, compared with $1.90 billion last year, according to estimates.
The stock carries a consensus Buy rating with an average analyst price forecast of $2,031.69. Recent analyst actions include:
Market data assigns Sandisk a Momentum score of 99.91, reflecting strong long-term relative performance despite the recent pullback. The stock has a Value score of 14.8, indicating it trades at a premium valuation that could increase investor focus on upcoming earnings and guidance.
Sandisk is a significant holding in several exchange-traded funds, including:
Large fund inflows or outflows in these ETFs could influence demand for Sandisk shares.
Sandisk shares were up 2.47% at $1,041.00 during premarket trading on Thursday, according to market data.
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