Key Takeaways
- Sandisk shares climbed 18% Thursday following Micron’s exceptional Q3 performance, which delivered $25.11 EPS versus the anticipated $20.78 and revenue of $41.5B.
- Scheduled to release earnings on Aug. 24, Sandisk is projected to report EPS of $33.72, representing a sequential increase of more than 100%.
- Year-to-date performance shows gains of 853%, while the 12-month return stands at 4,670%.
- Technical indicators show the 14-month RSI reaching 99.1, signaling extreme overbought conditions.
- Current trading levels position the stock 246% higher than its 200-day moving average and 51% above its 50-day moving average.
Sandisk (SNDK) shares experienced an 18% surge on Thursday, reaching $2,263.57, driven by memory chipmaker competitor Micron (MU) delivering exceptional fiscal Q3 results that lifted both companies’ stock prices.
Micron reported adjusted earnings of $25.11 per share, significantly exceeding Wall Street’s consensus estimate of $20.78. The company’s quarterly revenue reached $41.5 billion, representing approximately a four-fold increase year-over-year and surpassing analyst projections of $35.8 billion.
While Sandisk’s own earnings announcement isn’t scheduled until Aug. 24, the strong Micron results provided market participants with insight into current memory market dynamics.
Wall Street analysts have set elevated expectations for Sandisk’s forthcoming quarterly report. Consensus estimates point to earnings of $33.72 per share, which would mark more than a 100% sequential increase from the prior quarter.
Micron’s GAAP earnings jumped 104% quarter-over-quarter in its most recent period. Market participants appear to be anticipating that Sandisk, benefiting from two additional months of robust memory pricing dynamics, could deliver comparable results.
Artificial Intelligence Fuels Supply Constraints
During the earnings conference call, Micron’s CEO Sanjay Mehrotra emphasized that demand driven by artificial intelligence applications continues to show strength, with the company deploying capital investments at unprecedented levels to address market needs. Despite these efforts, he indicated that supply is not expected to align with demand in the near term.
This supply-demand gap has been a key catalyst behind Sandisk’s remarkable rally. The company’s shares have appreciated 853% year-to-date and posted gains of 4,670% over the trailing twelve months, propelled by AI data center infrastructure spending and constrained memory supply conditions.
Both Micron and Sandisk are securing extended supply agreements with clients at prevailing elevated margin levels. Micron disclosed that it’s achieving operating margins exceeding 80% on certain product lines. Sandisk is implementing a comparable approach, which may help sustain profitability even if market conditions moderate.
Technical Analysis Shows Extreme Momentum
The extraordinary gains have attracted scrutiny from traders monitoring technical indicators. Last week, prediction markets platform Polymarket characterized Sandisk as “officially the most overbought stock in history,” citing momentum measurements.
The data supports some of these concerns. According to Dow Jones Market Data, Sandisk’s 14-month Relative Strength Index (RSI) registered 99.1 as of Wednesday. Traditional technical analysis considers readings above 70 to indicate overbought conditions. For comparison, the stock’s previous all-time high 14-day RSI was 95.32, recorded in September 2025.
Looking at shorter intervals, the 14-day RSI stood at 55.8 at Wednesday’s market close, placing it within neutral territory. However, the extended timeframe indicators present a more concerning picture.
Additionally, Sandisk is currently trading 246% above its 200-day moving average, which sits near $652, and 51% above its 50-day moving average positioned at $1,489.
The company has been publicly traded for approximately 16 months following its separation from Western Digital. During this period, the stock has climbed from a low of $40 to a peak of $2,354.39.
Sandisk’s current market capitalization stands at $284 billion.
