SanDisk stock soared 27.5% to a record high near $350 on Tuesday, January 6, 2026, following pivotal comments from Nvidia CEO Jensen Huang at CES 2026. The flash memory giant's surge was part of a broader sector-wide rally triggered by Huang's declaration that the data storage market for AI is "completely unserved" and poised to become "the largest storage market in the world." Huang introduced a new "context memory storage" technology for Nvidia's Vera Rubin chip platform, designed to accelerate AI chatbot responses.
The optimism spread across the data storage sector. Western Digital shares climbed 16.8%, Micron gained 10%, and Seagate Technology Holdings rose nearly 14%, with all four stocks hitting record highs. The rally builds on existing strong momentum in the memory market. Morgan Stanley projects NAND flash memory prices will rise 30% to 35% in the first quarter of 2026, while reports indicate Samsung Electronics and SK Hynix are seeking 60-70% price increases for server DRAM.
Analysts immediately connected the dots to AI infrastructure demand. Bloomberg Intelligence's Jake Silverman noted Huang's comments "suggest that demand for NAND storage will remain robust across Nvidia systems." Bank of America analysts, led by Wamsi Mohan, identified SanDisk and peers as "key beneficiaries" of the push for AI inferencing and edge computing in 2026, citing "skyrocketing" storage demand from drones, surveillance, vehicles, and sports tech.
SanDisk, which became an independent company after being spun off from Western Digital in February 2025, has been a standout performer. The stock is up over 40% in the first three trading days of 2026 and has surged more than 1,080% since its low in April 2025. Wall Street maintains a Strong Buy rating with 11 Buy and three Hold recommendations, though the current price now sits about 26% above the average analyst target.
At CES, SanDisk also launched its rebranded Optimus NVMe solid-state drives, targeting AI PC and workstation builders. While the outlook is bullish, some caution remains. Morningstar analyst William Kerwin warned that current high prices may not be sustainable long-term, reflecting valuation concerns. Traders are now watching upcoming U.S. labor market data for its potential impact on interest rate expectations and high-multiple tech stocks.
