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Sandisk Corporation (NASDAQ: SNDK) shares were on the move Friday, climbing as tech stocks broadly rallied and investors doubled down on the idea that artificial intelligence will keep fueling demand for memory infrastructure.
The upbeat mood followed comments from Federal Reserve Gov. Christopher Waller, who eased worries about an imminent U.S. interest-rate hike. That helped lift Nasdaq futures by 0.47%, while S&P 500 futures stayed roughly flat.
Drew Pettit, chief investment strategist at Roundhill Investments, is staying bullish on memory stocks even after their recent pullback. He told CNBC that rising contract prices and stronger long-term estimates are supporting the sector, with industry revenue potentially tripling by 2030.
Pettit added that the recent correction has created a more attractive entry point as fundamentals keep improving.
Sandisk is trading above its major moving averages, a sign of underlying strength. The stock sits 6.4% above its 20-day simple moving average (SMA), 2.4% above its 50-day SMA, 5.5% above its 100-day SMA, and a hefty 60.4% above its 200-day SMA.
The 50-day SMA remains above the 200-day SMA, which typically supports a longer-term bullish trend. However, the 20-day SMA has dipped below the 50-day SMA, hinting at some recent cooling.
Momentum, as measured by the relative strength index (RSI), stands at 52.23. That's neutral territory, meaning the stock is neither overbought nor oversold.
On the price front, key resistance is near $1,696.50, while support sits around $1,485.
Wall Street remains constructive on Sandisk. The stock carries a Buy consensus rating with an average price target of $2,190.50.
Recent analyst moves have been mixed but generally positive. Mizuho maintained an Outperform rating on Aug. 25 but trimmed its price target to $1,875. RBC Capital raised its target to $1,600 with a Sector Perform rating on Aug. 14. Wells Fargo also bumped its target to $1,550 while keeping an Equal-Weight rating.
Sandisk shares were up 2.89% at $1,600.00 during premarket trading Friday, according to market data.
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