SanDisk Surges 7% as Memory Stocks Rebound From Last Week's AI-Driven Selloff

SanDisk shares climbed roughly 7% on Monday, October 19, clawing back a portion of the 18% loss suffered last week and the broader 27.5% decline recorded over the prior four weeks. The stock, which had been testing Fibonacci support around $1,346, opened the session near $1,350 in pre-market trading and extended gains through midday as investors returned to beaten-down semiconductor names across the board. Micron gained approximately 4% to around $916, while SK Hynix rose 5%, with memory chipmakers broadly leading a technology rebound that pushed the Nasdaq 100 up roughly 1.5%.

Several catalysts were cited for the move. Analysts pointed to growing industry adoption of Nvidia's NVHBM memory technology as a positive demand signal for high-bandwidth memory suppliers including SanDisk. The stock's deeply oversold technical condition and a pattern of upward Wall Street earnings estimate revisions were also noted as supporting a potential trend reversal after the heavy selling.

Not all the news was straightforward. A Seeking Alpha analysis flagged TSMC's $94 billion capital expenditure plan as a warning shot with implications for memory sector margins and competitive dynamics. A Benzinga exclusive argued that Samsung, not China's CXMT, represents the more serious long-term threat to SanDisk and Micron investors, even as CXMT reported a profit surge. China's CXMT shares slid despite those results, contrasting with the American and South Korean memory names. SanDisk trades at roughly 6 times forward earnings, a level some analysts view as pricing in a near-term peak, though others see it as attractive given the profitability the memory trade has generated during the AI buildout. Jim Cramer addressed SanDisk alongside Western Digital in his Stop Trading segment, adding to the stock's visibility during the session. Barron's noted that SanDisk and Lumentum led Monday's recovery among last week's biggest losers, while CoreWeave, also a heavy loser, did not participate in the rally despite a Goldman Sachs upgrade, as AI financing concerns continued to weigh on that name.