SanDisk shares declined by approximately 6% in Wednesday’s session, marking the first significant reversal following a staggering 1,747% advance since the start of 2025. This pullback has prompted momentum traders to reassess their positions after consecutive sessions of double-digit gains. Trading volume surged to more than twice the 30-day average, underscoring the growing interest among institutional and retail participants as profit-taking intensifies at multi-year highs.

In its latest quarter, SanDisk reported a 64% sequential increase in data center revenue, which climbed to $440 million as hyperscale customers accelerated deployments of flash storage for AI workloads. Gross margin expanded sharply to 51.1%, up from 29.9% year-over-year, reflecting a mix shift toward higher-margin enterprise solutions and improved factory yields. Management guided Q3 non-GAAP EPS to a range of $12.00–$14.00, more than doubling the $6.20 posted in Q2 and the $1.22 reported in Q1, while forecasting gross margins of 65%–67% as NAND supply remains constrained and pricing power strengthens.

During the third quarter, the Arizona State Retirement System acquired 40,752 shares of SanDisk stock, deploying roughly $4.57 million of capital into the name. A wave of hedge funds and asset managers also initiated or bumped up positions, with several adding stakes valued in the low-single-digit millions. On the sell-side, UBS lifted its price target to $1,000, Cantor Fitzgerald set a target of $800, and Wedbush raised its objective to $740, contributing to a consensus Moderate Buy rating and an average analyst target of $542.85. These upgrades reflect growing confidence in SanDisk’s AI-driven revenue trajectory and its ability to sustain margin expansion over the next several quarters.