Sandisk Corporation (NASDAQ: SNDK) is having a good morning. The memory chipmaker's stock moved higher on Thursday, but it's not acting alone. This is a sector-wide rally, and the catalyst is coming from the biggest name in AI chips.
Nvidia Corporation (NASDAQ: NVDA) reported its second-quarter earnings Wednesday after the bell, and the numbers were, to put it mildly, impressive. The company posted revenue of $96.22 billion, a 106% year-over-year jump that blew past the Street's $92.18 billion estimate. Adjusted earnings per share came in at $2.22, beating the consensus of $2.10. Data Center revenue surged 117% to $89 billion, while Edge Computing revenue climbed 27% to $7.2 billion. Gross margin expanded to 75%, up from 74.9% last quarter and 72.4% a year ago.
That kind of performance tends to lift all boats, and Sandisk is no exception. The stock is reacting to Nvidia's strength, and the broader market is feeling the love too. Nasdaq futures are up 1.04% and S&P 500 futures have gained 0.44%.
Nvidia Delivers a Double Beat
Nvidia's quarter was a textbook double beat, and CEO Jensen Huang didn't mince words about the demand picture. The company's data center business is the engine, and it's running at full throttle. For Sandisk, which makes NAND flash memory, this is a positive signal. AI infrastructure buildouts require massive amounts of storage, and if Nvidia's numbers are any indication, that demand isn't slowing down.
Sandisk's Technical Picture: A Pause, Not a Reversal
So where does Sandisk stand from a chart perspective? The stock is still extended on a longer horizon. At $1566.00, it's trading 63.8% above its 200-day simple moving average of $958.49. That keeps the bigger picture pointed higher, even with recent choppiness. But it's also 3.3% below its 50-day SMA of $1624.25, suggesting the stock has been digesting gains rather than accelerating.
Momentum, as measured by the Relative Strength Index, sits at 49.34. That's basically neutral, meaning the stock isn't stretched in either direction right now. The moving average structure is a bit mixed: the 20-day SMA ($1435.28) is below the 50-day SMA, which is a bearish crossover, but the 50-day remains above the 200-day, a bullish longer-term alignment. This combination often shows up when a strong uptrend pauses to work off excess momentum before the next directional move.
Here are the key levels to watch:
- Key Resistance: $1696.50 — a nearby ceiling that also sits close to the 50-day SMA zone, where rebounds can stall if buyers don't follow through.
- Key Support: $1485 — a nearby floor that lines up with the stock's short-term trend area (around the 20-day EMA at $1495.90), where dip-buyers may try to defend.
Sandisk shares were up 4.44% at $1565.87 during premarket trading on Thursday, according to market data.
Photo: PJ McDonnell / Shutterstock
