SanDisk Stock Looks Wildly Overbought, But SNDK's Chart and Fundamentals Say It Can Keep Climbing

SanDisk stock looks wildly overbought, but its chart and fundamentals argue it can keep climbing. Since separating from Western Digital, the flash-memory pure play has benefited from rising demand for NAND as AI infrastructure expands and data centers require more storage, while supply remains tight. The momentum is underscored by a monthly RSI near 99.14, an extreme reading that would normally signal a pullback, yet the trend has remained decisively higher. Year-to-date gains are about 725%, with roughly 847% gains over the past six months, and the shares trade well above the 50‑day and 200‑day moving averages (roughly 1,832 and 1,608). Valuation sits around 30.4x earnings, not cheap but justifiable given rapid growth and industry consolidation, according to Bank of America. Free cash flow delivered about $980 million in the latest quarter, providing tangible cash generation behind the rally. For the fiscal Q3 2026 period, Sandisk reported revenue of $5.95 billion, up 97% sequentially and 251% year over year, with net income around $3.62 billion. While prices can swing, the combination of demand, supply dynamics, and cash generation supports the bullish thesis.