SanDisk Corp (NASDAQ:SNDK) shares are trading lower Thursday morning, easing after a run that has seen the stock surge more than 1,100% since early 2025 and roughly 75% year-to-date as investors piled into AI memory plays. The pullback follows months of gains and likely reflects profit-taking rather than a change in the company's fundamentals.

• SanDisk shares are experiencing downward pressure. What’s pulling SNDK shares down?

AI-Driven Memory Shortage Still A Major Tailwind For SNDK

Founded in 1988, SanDisk helped commercialize NAND flash memory used in USB drives, SD cards, smartphones and solid-state drives. Over time it has shifted from consumer memory cards to higher-value enterprise SSDs and custom flash solutions for data centers and hyperscale cloud customers, positioning it as a key beneficiary of the AI data boom.

AI data centers are soaking up enormous quantities of high-performance memory, pushing DRAM prices up as much as 50% and NAND prices more than 30% in late 2025.

What Thursday's Pullback Means For Investors

Thursday’s decline comes against that backdrop: SNDK is retreating from extreme strength in a market where memory chipmakers enjoy full order books while PC and smartphone manufacturers struggle with higher component costs.

If AI capex and demand for high-bandwidth and flash memory stay elevated, SanDisk's earnings power and pricing leverage could remain high, even if the stock sees bouts of volatility after its historic run.

Overbought Conditions Signal Caution Ahead

The stock is currently trading 47.3% above its 20-day simple moving average (SMA) and 147.9% above its 100-day SMA, demonstrating strong longer-term strength. Over the past 12 months, shares have surged 904.53% and are currently positioned closer to their 52-week highs than lows.

The RSI is at 86.37, indicating overbought territory, while the MACD is above its signal line, suggesting bullish momentum. The combination of overbought RSI and bullish MACD indicates bearish momentum, signaling that traders should be cautious.

• Key Resistance: $501.95

SNDK Earnings On Deck

Investors are looking ahead to the next earnings report on Jan. 29.

• EPS Estimate: $3.22
• Revenue Estimate: $2.64 billion

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $298.89. Recent analyst moves include:

• Citigroup: Buy (Raises Target to $490.00) (Jan. 20)
• Wells Fargo: Equal-Weight (Raises Target to $380.00) (Jan. 15)
• Benchmark: Buy (Raises Target to $450.00) (Jan. 15)

SNDK Shares Pull Back

SNDK Price Action: SanDisk shares were down 0.49% at $498.80 at the time of publication on Thursday, according to Benzinga Pro data.

Image: Shutterstock