Sandisk (NASDAQ:SNDK) stock has been having one of the best bull runs on Wall Street this year. It has jumped by 476% in 2026, beating benchmark indices like the S&P 500 and Nasdaq 100. Sandisk is up by 3,320% in the last 12 months, bringing its market capitalization to $208 billion.

Sandisk Stock Has Surged Amid Rising Storage Demand

SNDK has soared amid the rising storage demand amid the artificial intelligence boom in the United States. Its most recent earnings showed that its revenue surged by 97% QoQ in the third fiscal quarter to $5.9 billion. It soared by 251% from the same period last year, making it one of the fastest-growing companies in the US. 

The management delivered an upbeat guidance, noting that it had now reached an inflection point as it transitioned its business towards the highest-value end markets. 

Wall Street analysts are upbeat about its future growth, with the average estimate showing that its revenue will jump by 164% this year to $19.48 billion. The estimate is also that its revenue will then surge by 112% in the nest fiscal year. 

Sandisk also has exciting profit margins, especially for a hardware company. It has a gross profit margin of 78.4% and a net income margin of about 61%. NVIDIA (NASDAQ:NVDA) has a net profit margin of about 54%. 

Technical Analysis Suggests Pullback Is Possible

Still, despite the strong fundamentals, technicals suggest that the SNDK stock price may be ripe for a reversal. The first key concept is that the stock has become highly overbought, with the Relative Strength Index being at 78. Other oscillators like the Stochastic and the Money Flow Index show that it is extremely overbought.

Second, the stock has deviated substantially from its short-term and long-term moving averages. The 25-week moving average is at $730, much lower than the current $1,407. Also, the 50-week moving average is at $474. As such, there is a likelihood that the stock will have a mean reversion, a situation where an asset moves back to its historical averages. 

Finally, the weekly chart shows that the Sandisk share price remained in a consolidation phase between February and August last year. According to the Wyckoff Theory, the stock was simply in the accumulation phase in this period. 

It then moved to the markup stage in August last year, where it has remained since then. If this theory works out well, it means that the stock will next move to the distribution followed by the markdown phases. 

As a bonus, the current Sandisk stock is much higher than what most Wall Street analysts expect. The average estimate among analysts is $1,065, down by about 25% from the current level.

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