SanDisk Shares Rise 6% Amid Persistent NAND Flash Shortage and AI Demand Surge SanDisk (SNDK) saw its stock climb 6% in Friday trading, reaching $655 midday, as investors renewed optimism over a sector-wide NAND flash memory shortage driven by AI infrastructure expansion. The stock’s rally follows a 11.6% surge on March 9 and continued gains on March 10, reflecting a broader trend of volatile upward momentum in the memory sector. The core driver of SanDisk’s recent performance is the structural shortage of NAND flash memory, fueled by rapid growth in AI data centers. Analysts predict this supply constraint will persist through 2028, positioning SanDisk as a critical supplier for hyperscalers reliant on its products for AI operations. The company’s Q2 FY2026 results underscored this narrative, with revenue hitting $3.025 billion—up 61.25% year-over-year and exceeding estimates by 12.54%. The datacenter segment, a key growth area, surged 76% year-over-year to $440 million, highlighting the sector’s reliance on SanDisk’s infrastructure. SanDisk’s financials also showed strong improvements, with free cash flow reaching $980 million, a significant jump from the prior year. The company provided forward guidance for Q3 FY2026, projecting revenue between $4.4 billion and $4.8 billion, alongside non-GAAP EPS of $12 to $14. These figures have bolstered investor confidence, with the stock’s one-year gain reaching 1,126.84% since its spin-off from Western Digital in February 2025. The memory shortage narrative has gained traction as AI demand accelerates, with SanDisk and SK Hynix collaborating on global standards for next-generation High Bandwidth Flash memory under the Open Compute Project.#ai_infrastructure #nand_flash #san_disk #open_compute_project #western_digital
