SanDisk (SNDK) shares are inching up this morning as the launch of the Roundhill Memory ETF (DRAM) sparks fresh interest in the artificial intelligence (AI) memory trade.
As investors continue the hunt for concentrated exposure to the memory layer of the AI stack, SNDK is emerging as a top-tier play, with a relative strength index (RSI) in the late 50s indicating potential for further upside ahead.
Year-to-date, SanDisk stock is now up a whopping 162%, making investors wonder if they should trim exposure and take profit at the current price of roughly $725.
Why Does the DRAM Fund Matter for SanDisk Stock?
DRAM's debut offers a critical technical tailwind for SanDisk through passive fund flows.
With a 4.66% weighting in the fund, ranking it as a top-five holding alongside industry behemoths — Samsung and Micron (MU) — the multinational is now a key beneficiary of institutional capital entering this thematic ETF.
For flow-driven traders, this inclusion is significant; as the Roundhill Memory fund gains assets under management (AUM), it must programmatically purchase SNDK stock to maintain its target weight.
This consistent buying pressure often creates a price floor and trims volatility, validating SanDisk’s status as a “must-own” AI infrastructure giant.
SNDK Shares Remain Attractively Priced
Long-term investors should consider sticking with SNDK also for its strong fundamentals.
According to Barchart, the company is expected to earn $13.40 a share in its current financial quarter — a dramatic improvement from last year's loss of $0.60 a share — as hyperscalers continue to integrate BiCS8 flash tech.
Still, SanDisk shares are currently trading at a rather attractive 18x forward earnings.
This valuation multiple is even more compelling considering experts see a NAND upcycle driving the semiconductor firm’s gross margin into the mid-60s next year.
What’s the Consensus Rating on SanDisk?
Despite their meteoric run, Wall Street analysts remain bullish as ever on SNDK shares, especially since they remain firmly above their major moving averages (MAs).
The consensus rating on Milpitas-headquartered SanDisk is a “Strong Buy” currently, with price targets as high as $1,000, indicating potential upside of another 37% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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