Why Sandisk Stock Bounced Back Today

SanDisk (SNDK) surged 3.8% Tuesday after UBS analyst Nicolas Gaudois projected DRAM memory prices will jump 32% sequentially in Q3 2026. The catalyst matters for SanDisk because the company's high-bandwidth flash (HBF) NAND technology could substitute for DRAM as supply shortages extend through at least mid-2028, according to investor positioning.

SanDisk manufactures NAND flash memory, not DRAM, but the bullish DRAM forecast is pulling the stock higher on the thesis that chronic DRAM deficits will drive customers toward SanDisk's HBF alternative. Gaudois's call centers on persistent supply constraints in the DRAM market over the next two years.

The rally comes despite valuation concerns. SanDisk trades at 60 times earnings—triple the multiple of rival Micron Technology. That premium raises questions about whether the DRAM shortage thesis alone justifies current pricing, particularly when SanDisk's core NAND business operates in a separate segment of the memory market.