SanDisk (SNDK) stock rises over 12% on January 6, 2026, driven by acquisition rumors and strong AI/data center storage demand.
As of January 6, 2026, shares of SanDisk Corporation (ticker: SNDK) jumped over 12% in midday trading, closing the day up significantly and adding to recent gains. The surge comes amid reports of renewed acquisition interest from major tech players and strong demand for high-capacity storage solutions in AI and data centers.
Acquisition Rumors Fuel the Fire
The primary catalyst appears to be fresh speculation around potential buyout offers. Sources indicate Western Digital—SanDisk’s longtime partner through joint ventures—and other giants like Micron or even Samsung are circling, eyeing SanDisk’s leadership in NAND flash and enterprise SSDs. A deal could value the company north of $25 billion, a premium to its current market cap.
These rumors build on SanDisk’s undervalued position after years of consolidation in the memory sector, making it an attractive target for scale in the exploding AI storage market.
Strong Demand in AI and Data Center Storage
SanDisk reported preliminary Q4 results exceeding expectations, driven by robust sales of high-margin enterprise SSDs and embedded storage for AI servers. Demand from hyperscalers like AWS, Google Cloud, and Microsoft Azure has spiked, with SanDisk’s advanced 3D NAND tech enabling denser, faster drives critical for training large models.
Analysts note the company’s pivot to premium segments has boosted margins, with gross margins approaching 45%—a multi-year high.
Technical Breakout and Analyst Upgrades
Technically, SNDK broke above key resistance at $95, triggering buy signals and short covering. Major firms like Barron’s highlighted the stock in positive coverage, with upgrades from “Hold” to “Buy” and price targets raised to $120-130.
Volume surged to over three times average, signaling strong institutional accumulation.
Broader Market Context
The move aligns with a rebound in semiconductor and storage stocks, fueled by AI capex projections exceeding $200 billion industry-wide in 2026. SanDisk’s exposure positions it as a pure-play beneficiary compared to diversified peers.
Conclusion
SanDisk’s stock surge on January 6 reflects a perfect storm of M&A speculation, stellar demand for AI storage, and improving fundamentals. As talks potentially heat up, investors eye further upside—though risks like deal failure or cyclical downturns remain.
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