SanDisk Corp.'s stock soared 5.06% during intraday trading on Wednesday, as the company benefited from two significant catalysts driving investor optimism.
The surge follows news that SanDisk has been included as a core holding in the newly launched Roundhill Memory ETF (DRAM), which focuses on AI-oriented memory stocks. The ETF surpassed $1 billion in assets within just 10 trading days, creating a new channel of institutional demand for SanDisk shares as investors gain targeted exposure to the AI memory theme.
Concurrently, heightened market optimism surrounds SanDisk's upcoming fiscal third-quarter earnings report. Analysts project robust performance, with revenue guidance midpoint representing a 52% sequential increase and gross margins expected to reach a historic high of 65-67%. The outlook is fueled by an explosion in structural AI storage demand and sustained supply shortages driving average selling price increases, with net income forecast to surge over 800% year-over-year.
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