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Sandisk's Swings Are Getting Bigger—Here's How to Play Them
Written by Sam Quirke. Date Posted: 2/5/2026.
Key Points
- Shares of Sandisk have surged almost 150% since the start of January. At one point, it was up almost 1,800% over the past year.
- This comes with increased volatility, however, as recent sessions have seen intraday swings of around 20%.
- With momentum still strong but technicals clearly overheated, February is about positioning, not chasing.
With its biggest intraday drop in months immediately followed by its biggest intraday gain, Sandisk Corporation (NASDAQ: SNDK) has entered a new phase of price action. The stock was already one of the standout winners of 2025, then added nearly 200% in the first weeks of 2026. At one point it was up roughly 1,800% since its spinoff from Western Digital.
Those kinds of gains rarely come quietly or in a straight line.
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Watch the video to get the ticker nowRapid, sometimes violent, swings in sentiment have been on full display. The Jan. 30 intraday drop of about 20% was followed the next trading day by nearly a 25% gain — a reminder that SNDK now demands an iron stomach.
As we move through February, the question isn't whether Sandisk has an attractive long-term story — it clearly does. The real question is how investors should position themselves to take advantage of the volatility.
Why the Bull Case Is So Strong
Before getting tactical, it helps to understand why buyers jump on dips in SNDK. Since spinning out from Western Digital Corp (NASDAQ: WDC) last year, Sandisk has quickly become one of Wall Street's favorite growth stories.
The appeal is straightforward: broad exposure to artificial intelligence (AI), recently impressive margins, and market demand for its storage products that's viewed as less cyclical than much of the broader semiconductor space. That combination is rare in today's market.
Last week's earnings report reinforced those themes by beating expectations across the board. Revenue jumped more than 60% year-over-year, earnings topped forecasts, and forward guidance was eye-catching: fiscal third-quarter adjusted earnings per share (EPS) are now expected between $12 and $14, versus prior estimates closer to $5. That scale of optimism helps explain why the Jan. 30 selloff was quickly absorbed and followed by fresh highs.
All of this suggests Sandisk will keep attracting buyers even if sizable pullbacks materialize. It's the right company, in the right place, at the right time.
Why Volatility Is Likely to Remain
Even with strong fundamentals, the technical setup points to continued turbulence. Sandisk's relative strength index (RSI) is approaching 90, a level that signals extreme overheating.
That doesn't preclude further gains in 2026 — the stock could certainly go higher — but it does make sharp pullbacks and bouts of profit-taking more likely. No stock, however compelling, moves up in a straight line forever.
With earnings out of the way, the market appears to be repricing Sandisk's long-term potential higher. The risk is a sudden selloff — company- or market-driven — that gains momentum and unnerves investors who bought near recent highs, temporarily turning a dip into something more uncomfortable.
2 Ways to Play the Volatility Through February
One approach is patience: wait for a pullback and be ready to act decisively. Given the strength of the recent earnings report and the clear appetite to buy weakness, dips can be treated as opportunities rather than warnings. The danger is deploying too much too soon if a pullback deepens before stabilizing.
The alternative is to respect the momentum: build a smaller position on the current strength and plan to add on future dips, rather than trying to pick a perfect entry. This suits investors comfortable with large swings who believe the stock will be materially higher a year from now despite near-term volatility.
Analyst commentary reinforces that longer-term confidence. Cantor Fitzgerald reiterated its bullish stance last week with an $800 price target, while UBS followed this week with a $1,000 target. With the stock still trading below $700, those targets imply meaningful upside even after the extraordinary rally — but investors must be prepared to take the lows with the highs.
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