Sandisk Corporation (NASDAQ:SNDK) shares jumped more than 4% in Wednesday's premarket trading, riding a wave of optimism about AI infrastructure spending. The catalyst? Strong demand signals from CoreWeave Inc. (NASDAQ:CRWV) and Super Micro Computer Inc. (NASDAQ:SMCI), which bode well for data-center memory and storage needs.
It wasn't just Sandisk getting in on the action. Peers like Micron Technology Inc. (NASDAQ:MU), Western Digital Corporation (NASDAQ:WDC), and Seagate Technology Holdings PLC (NASDAQ:STX) also moved higher, as investors piled back into AI-linked storage names. This group has been particularly sensitive to any shifts in expectations around AI data-center spending and memory demand, so a positive read-through from major players can spark a sector-wide rally.
The broader market lent a hand too. Nasdaq futures gained 0.69%, while S&P 500 futures rose 0.24%. This supportive backdrop comes as Sandisk tries to bounce back from its recent pullback from June highs.
Technical Analysis
Looking at the charts, Sandisk's longer-term trend is still bullish. The stock trades about 50% above its 200-day simple moving average of $883.31. That's a solid cushion, suggesting the big-picture uptrend remains intact.
But the intermediate trend tells a different story. Shares are 20.7% below the 50-day SMA of $1,671.54 and 3.6% below the 100-day SMA of $1,375.07. The 20-day SMA is below the 50-day SMA, which typically signals near-term weakness. However, the 50-day SMA remains above the 200-day SMA, indicating the longer-term uptrend hasn't been broken.
Momentum is starting to turn. The MACD is above its signal line, and the histogram is positive. That's a sign that selling pressure is easing and bullish momentum may be rebuilding. For traders, the key levels to watch are resistance at $1,446.50 and support at $1,277.50.
Analyst Outlook
Wall Street remains optimistic. The stock has a consensus Buy rating and an average price forecast of $2,114.77. Recent analyst moves include Argus Research upgrading Sandisk to Buy on Aug. 10. RBC Capital Markets maintained a Sector Perform rating but raised its price forecast to $1,300 on Aug. 6. Wells Fargo also maintained an Equal-Weight rating but lowered its price target to $1,400 on the same day.
Top ETF Exposure
Sandisk also has significant exposure through several exchange-traded funds, which can influence its price action. The Invesco S&P 500 Pure Growth ETF (NYSE:RPG) holds 9.61% in Sandisk, the Global X Nasdaq 100 Covered Call ETF (NASDAQ:QYLD) has 7.64%, and the First Trust US Equity Opportunities ETF (NYSE:FPX) holds 7.37%. Large inflows or outflows from these funds can contribute to buying or selling pressure in the stock.
SNDK Price Action
As of premarket trading on Wednesday, Sandisk shares were up 4.12% at $1,323.43, according to market data.
