Why Are SanDisk Shares Surging Wednesday?

SanDisk Corp (NASDAQ:SNDK) shares are climbing Wednesday. The stock rose as the broader market recovers. This follows a volatile period for the memory sector. Sector Rebound Following TurboQuant Panic The memory industry recently faced a sharp selloff. Investors worried about Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and its new TurboQuant tool. The AI algorithm reportedly cuts memory requirements by six times. This development initially rattled the 2026 AI trade. Analysts Dismiss Demand Destruction Fears Market experts are pushing back against bearish sentiment. Bank of America Securities analyst Vivek Arya maintained a $500 price target on peer Micron Technology Inc. (NASDAQ:MU). He argued that efficiency often increases total consumption. Arya noted the improvement likely leads to a “6x increase in accuracy and/or context length, rather than 6x decrease in memory.” Shifting the AI Cost Curve Morgan Stanley's Shawn Kim told SCMP that TurboQuant lowers inference costs. This could expand AI adoption across the globe. Kim stated, “TurboQuant is less about incremental optimisation and more about shifting the cost curve of AI deployment.” Broader Market Strength Supports Gains Wednesday's rally aligns with general bullishness. The Nasdaq is up 1.03% while the S&P 500 gained 0.73%. SanDisk stock is up 142.65% year-to-date. Technical Analysis Sandisk is trading 2.7% above its 20-day simple moving average (SMA) and 53.7% above its 100-day SMA, which keeps the longer-term uptrend intact even as the stock digests gains. Shares have increased 1278.09% over the past 12 months and are currently positioned closer to their 52-week highs than lows. The RSI is at 50.19, which sits in neutral territory. Meanwhile, MACD is at 10.4394 and remains below its signal line at 25.4361. Key Resistance: $668.00 Key Support: $540.00 SNDK Stock Price Activity: SanDisk shares are trading up 5.12% at $667.87 at the time of publication on Wednesday, according to Benzinga Pro data. Photo: Nor Gal / Shutterstock