SanDisk jumps 7% on Nasdaq 100 entry as AI boom fuels demand surge

SanDisk stock rose on Monday after Nasdaq confirmed the flash memory supplier would be added to the Nasdaq-100 index, a move expected to drive significant passive inflows and boost institutional visibility.

Shares climbed 7.14% to $912.57, even as broader market indices were mixed as the Dow Jones fell 184 points amid geopolitical tensions linked to President Donald Trump’s order to blockade the Strait of Hormuz.

The broader market weakness contrasted with strong momentum in SanDisk, which has surged 231% year-to-date and 2,620% over the past 12 months.

The company is set to join the Nasdaq-100 before the market opens on April 20, replacing Atlassian, whose shares have dropped 61% in 2026 amid concerns over AI-driven disruption in the software sector.

Index inclusion to drive flows and visibility

SanDisk’s addition to the Nasdaq-100 is a key catalyst behind the stock’s recent gains. The index, which tracks 100 of the largest non-financial companies listed on Nasdaq, is followed by more than 200 investment products managing over $600 billion globally.

This inclusion is expected to trigger mechanical buying from index funds and exchange-traded funds, providing sustained support for the stock. Historically, joining a major index like the Nasdaq-100 or S&P 500 tends to lift share prices due to mandatory purchases by passive investors.

Analyst sentiment has also turned increasingly bullish. According to Barchart data, the stock has received 14 “Strong Buy,” 1 “Moderate Buy,” and 5 “Hold” ratings, with price targets ranging from $450 to $1,250.

Adding to the optimism, Bernstein SocGen Group analyst Mark C. Newman recently raised his price target by 25% to $1,250, the highest on Wall Street. His valuation is based on average earnings between 2026 and 2029, estimating $114 per share annually and applying an 11-times multiple.

AI demand and pricing power underpin rally

SanDisk’s strong performance is closely tied to surging demand for memory driven by artificial intelligence infrastructure. The company has benefited from rising NAND flash prices and tightening supply conditions.

The firm recently increased NAND flash prices by more than 10% starting April 1, signaling growing pricing power. Market data suggests contract prices for NAND memory could rise between 70% and 75% in the current quarter compared with the previous one.

SanDisk has also strengthened its manufacturing outlook through a long-term partnership extension with Kioxia Corporation at its Yokkaichi plant, securing production capacity for the next five years.

This demand surge is largely fueled by AI data centers, where memory requirements are significantly higher than in traditional computing environments.

The company’s latest BiCS8 technology is gaining traction and is expected to account for a majority of production by the end of fiscal 2026.

Earnings momentum and future challenges

Recent earnings suggest a structural improvement in profitability rather than a short-term rebound. In fiscal Q1 2026, SanDisk reported revenue of about $2.3 billion, up 21% sequentially, while non-GAAP EPS reached $1.22, beating expectations.

Momentum continued into Q2 2026, with revenue rising to approximately $3.03 billion and non-GAAP EPS surging to $6.20. Data center revenue has been a standout driver, growing 26% sequentially in Q1 and accelerating to 64% quarter-on-quarter in Q2 to reach $440 million.

The company is also expanding its footprint with hyperscalers, with ongoing qualification processes that could further boost demand for its products in AI and cloud environments.

Despite the strong backdrop, sustaining the rally may prove more challenging. While SanDisk has benefited from its separation from Western Digital and inclusion in major indices, expectations are now significantly higher.

The convergence of index inclusion, bullish analyst outlooks, AI-driven demand, and favorable pricing dynamics has propelled SanDisk into one of the standout tech performers of 2026.

However, with the bar for future performance rising, investors will be closely watching upcoming earnings for signs of continued momentum.