“SanDisk shares surged over 27% following Nvidia CEO Jensen Huang’s CES remarks labeling memory storage as a vastly unserved market amid exploding AI-driven demand and skyrocketing prices, propelling related stocks like Western Digital, Seagate, and Micron higher while underscoring a potential shift toward massive growth in data storage infrastructure.”
Market Reaction to Huang’s Comments Nvidia’s chief executive highlighted during a keynote at the Consumer Electronics Show that the rapid advancement of AI technologies is creating unprecedented pressure on memory and storage systems. He emphasized that current infrastructure falls short of meeting the needs for AI’s working memory, positioning this segment as one ripe for explosive expansion. This sentiment triggered immediate buying interest in memory-focused companies, with SanDisk leading the charge.
The stock climbed to a record high, closing at $357.75 after a 27.55% intraday gain, marking one of its strongest single-day performances in recent history. This move extends SanDisk’s impressive run, with shares up 42.61% year-to-date and a staggering 1,150% increase from its 52-week low in April 2025. Trading volume spiked to over 17 million shares, more than double the average, reflecting heightened investor enthusiasm.
Broader Industry Impact Huang’s remarks rippled across the sector, boosting peers in data storage and memory production. Western Digital, which integrates SanDisk’s flash memory technologies, rose 16.7% to close at $219.38. Seagate Technology advanced 14%, while Micron Technology gained 9%. These moves come against a backdrop of tight supply chains, where NAND flash and SSD components are in short supply due to surging AI inference and edge computing demands.
Analysts point to AI models’ growing complexity, with parameters ballooning and data types evolving from text to video, as key drivers amplifying memory requirements. Huang projected that storage could eclipse other tech segments in market size, fueled by innovations like key-value caches in Nvidia’s upcoming Rubin platform.
Key Drivers Behind the Surge
| Company | Stock Ticker | Daily Change (%) | Closing Price | Year-to-Date Gain (%) | 52-Week High |
|---|---|---|---|---|---|
| SanDisk | SNDK | +27.55 | $357.75 | +42.61 | $357.75 |
| Western Digital | WDC | +16.70 | $219.38 | +28.45 | $219.38 |
| Seagate Technology | STX | +14.00 | $145.20 | +19.32 | $145.20 |
| Micron Technology | MU | +9.00 | $162.50 | +15.67 | $162.50 |
| Nvidia | NVDA | -0.47 | $187.24 | +2.15 | $193.63 |
AI Demand Overload : AI systems require vast amounts of high-speed memory for real-time processing, outpacing existing capacities. Huang noted that agentic AI eras demand hierarchical storage solutions, from SRAM and HBM to emerging high-bandwidth flash (HBF).
Supply Constraints : Industry-wide NAND shortages are projected to persist into 2027, with suppliers like SanDisk ramping up production through partnerships and technology transfers. Recent deals with major cloud providers, including securing dedicated wafer capacity, signal sustained revenue growth.
Product Innovations : SanDisk’s latest Optimus SSD lineup, optimized for AI workloads, has fueled optimism. These drives offer enhanced endurance and capacity, aligning with the shift toward read-intensive AI priors and KV caches.
Financial Strength : SanDisk reported $2.3 billion in quarterly revenue, a 23% year-over-year jump, driven by datacenter demand. Earnings per share have improved rapidly, with 21% growth, positioning the company to capitalize on the memory supercycle.
Future Outlook : Projections indicate memory bandwidth and capacity needs doubling every two years, potentially expanding the market from hundreds of billions to trillions in value. This could spur further investments in stacking technologies, where SanDisk holds a competitive edge in NAND flash.
Sector Implications The rally underscores a pivot from GPU dominance to memory as the bottleneck in AI scaling. With cloud giants like Google and Meta increasing procurement, SanDisk and peers are poised for multi-year tailwinds. However, risks include potential overcapacity if new fabs come online faster than expected or if AI adoption slows. Current trends suggest robust pricing power, with NAND wafer average selling prices rising amid shortages.
Disclaimer: This news report provides general information and tips based on publicly available sources and is not intended as financial advice or a recommendation to buy, sell, or hold any securities.