Company Overview - Sandisk (SNDK) has a market capitalization of approximately $69 billion and specializes in developing NAND flash memory, which is increasingly utilized in AI-related devices such as robots and autonomous cars [4] - The company was spun off from Western Digital (WDC) nearly a year ago and has seen significant demand for its NAND memory due to the AI boom, leading to a surge in NAND prices and operating cash flow [4] Stock Performance - SNDK stock has experienced a remarkable increase of 169% over the three months ending January 23, while the Russell 2000 iShares ETF (IWM) advanced by 7.6% during the same period [2][5] - Despite the strong performance since its spinoff, SNDK shares faced a notable decline between November 12, 2025, and the end of 2025, but rebounded significantly in early 2026 [5] - On January 23, 2026, the IWM dropped by 1.85%, while SNDK stock fell by 5.88%, indicating a potential loss of momentum for both [5][6] Market Trends - The demand for NAND flash memory is expected to continue benefiting from the AI boom over the next year or two, although there are indications that SNDK's short squeeze may moderate in the short term due to macroeconomic issues [2][3] - The performance of SNDK is closely correlated with the IWM, suggesting that broader market trends may impact SNDK's stock performance [1]
An Extreme Short Squeeze Is Underway in Sandisk Stock. How Much Higher Can Shares Go?