SanDisk (SNDK) stock has been on an absolute tear, skyrocketing by over 1,000% in the past year.

This once-“boring” memory maker turned into a market rocket, thanks to a perfect storm of factors like the artificial intelligence (AI) boom and a major NAND flash memory crunch.

What’s behind this epic rally, and can it continue? Below we tackle the five key questions investors are asking about SanDisk’s surge:

1. Why did SanDisk stock go up so much?

SanDisk’s stock price exploded because its core product – flash memory chips – suddenly became the hottest commodity in tech. The rise of AI meant data centers were ravenous for fast storage, but the supply of NAND flash memory was tight. This AI memory crunch (essentially a NAND flash shortage) sent chip prices soaring, which in turn fueled record earnings for SanDisk. With profits booming and demand outpacing supply, investors piled into SNDK stock – driving it up over 1,000% in an astonishing rally. (For the full story, read the full MarketWise breakdown here.)

2. Is SanDisk benefiting from the AI boom?

Absolutely – SanDisk has become a big winner of the AI boom. In the AI era, it’s not just about powerful processors; it’s also about having enough lightning-fast storage for all that data. As MarketWise puts it, “if there’s no memory, there’s no AI.” Every AI data center needs tons of flash memory (SanDisk’s specialty) to train models and power AI services, so the AI infrastructure buildout has massively lifted demand for SanDisk’s products. Even Nvidia’s CEO recently called AI data storage a “completely unserved market” that could become “the largest storage market in the world” – underscoring just how crucial companies like SanDisk are to the AI revolution. (Read the full MarketWise breakdown here for all the AI details.)

3. How is SanDisk different from other memory stocks?

SanDisk isn’t just another memory chip company – it has some unique advantages setting it apart from peers:

• Cost edge: Through a long-term joint venture with Kioxia (formerly Toshiba’s memory business), SanDisk secures massive manufacturing scale and lower costs. This partnership lets it produce flash memory more cheaply than many rivals.
• Market clout: The NAND flash industry is dominated by just a few players (an oligopoly). SanDisk holds significant market share alongside giants like Samsung and SK Hynix. In a shortage environment, being one of the few big suppliers gives SanDisk bargaining power and steady demand.
• High-end focus: Unlike some competitors, SanDisk zeroes in on premium, enterprise-grade storage for data centers. It’s even previewing a 256TB solid-state drive – ultra-dense data center storage that cloud giants crave. By delivering top performance and reliability (where customers are less price-sensitive), SanDisk can command a price premium.
• Pricing power: Thanks to these strengths, SanDisk has something rare for a chipmaker: real pricing power. That transforms it from a typical boom-bust memory stock into a more durable AI-era infrastructure player with fatter margins.

The MarketWise article dives deeper into SanDisk’s edge over other memory stocks – read the full breakdown here.

4. Could SanDisk stock crash?

After such a meteoric rise, could SNDK come crashing down? It’s possible – especially if the perfect conditions change. Some potential risk factors include:

• Memory cycle flip: The memory market is famously cyclical. Today’s shortage could turn into a glut if manufacturers ramp up output, which would send flash prices (and SanDisk’s profits) plunging.
• AI demand slowdown: AI isn’t going away, but its red-hot growth could cool. If the buildout of AI data centers slows or becomes more efficient, demand for new memory could normalize – and a stock priced for perfection can fall hard on any sign of deceleration.
• Rising competition or new tech: Rivals like Samsung won’t sit by forever. They could flood the market or introduce new memory technologies, undercutting SanDisk. More competition means less pricing power.
• Overvaluation/Hype: After a 1,000% rally, SanDisk’s valuation is extremely high. Any stumble – even “good” (not great) earnings – might spook investors and trigger a tumble from these heights. When everyone is wildly bullish, the downside can be brutal.

In short, yes – a crash is possible if the AI-memory boom reverses or even blinks. That’s why investors should stay vigilant. (The MarketWise breakdown details these risks further – check it out here.)

5. Is SanDisk still a buy after its massive rally?

SanDisk could climb higher, but it’s a tougher call after such a massive rally. The bull case: the same forces behind the surge (skyrocketing AI spending on infrastructure, a NAND flash supply crunch, and SanDisk’s strong positioning) are still in play – so the story isn’t over. However, after a 1,000% run, a lot of good news is already priced in. The easy money has been made, and any supply ramp-up or cooling of demand could hit the stock hard. MarketWise’s takeaway: don’t blindly chase SNDK at all-time highs. It might be wise to wait for a pullback – if the long-term AI memory trend stays strong, buying on a dip could be a smarter move than jumping in after a parabolic run.

Bottom line: SanDisk’s epic rally shows how critical AI memory has become, but no stock goes up in a straight line forever. To get the full scoop on why SanDisk stock skyrocketed and what might happen next, be sure to read the full MarketWise breakdown here and dive deeper into the details.