Shares of SanDisk Corp (NASDAQ:SNDK) are retreating on Thursday as investors pull capital off the table following an 412.27% year-to-date surge.

The decline marks a shift in momentum for the memory giant, which has recently dominated the AI storage narrative.

Short Interest Inches Higher

Recent data indicates a notable shift in market sentiment. Short interest in SanDisk increased during the latest reporting period. The number of shares held short rose from 8.06 million to 9.75 million.

This spike brings the short float to 10.33% of the company's publicly available shares.

Based on an average daily volume of 16.83 million shares, short sellers could exit positions in just one day without necessarily triggering a massive squeeze.

Burry Signals Dot-Com Redux

Adding to the tension, "The Big Short" investor Michael Burry voiced concerns via X on Wednesday. Burry noted that the Nasdaq surge is "more extreme" than the 1999 bubble.

Burry highlighted that Qualcomm Inc. (NASDAQ:QCOM) held a peak 52-week return of 2,620% during the 1999 boom. In contrast, SNDK skyrocketed 3,960% between May 2025 and May 2026. Burry stated, "SNDK is beating that by 1300bps."

While Evercore ISI analyst Amit Daryanani recently praised SanDisk's 80% gross margins and $42 billion in AI-related deals, Burry's commentary focuses on the "fragility" of such record-breaking rallies.

SanDisk Technical Analysis

Sandisk Corporation (SNDK) is currently positioned well above its key moving averages, signaling strong bullish momentum. The 20-day SMA is 30.5% above the 50-day SMA, while the 50-day SMA is 67.6% above the 200-day SMA, indicating a solid upward trend.

The RSI is currently at 77.77, placing it in overbought territory, which suggests that Sandisk's stock may be due for a pullback or consolidation soon. This high RSI level reflects strong buying pressure but also warns traders to be cautious, as it may indicate an exhaustion of momentum.

MACD is above its signal line, indicating bullish momentum for Sandisk Corporation. This suggests that the current trend is strong, but traders should watch for any signs of a reversal as the stock remains in overbought conditions.

Currently, there are no defined support or resistance levels for Sandisk Corporation, which means traders should be vigilant for price action that could establish these levels. If the stock breaks above recent highs, it could signal a continuation of the bullish trend, while a drop could indicate a potential reversal.

Looking at the longer-term trend, Sandisk stock has shown an impressive 12-month performance of 3842.47%. This remarkable return highlights the strength of the upward trend and suggests that traders should remain focused on maintaining positions as long as the bullish indicators persist.

SNDK Price Action: SanDisk shares were down 2.53% at $1379.71 at the time of publication on Thursday. The stock is trading near its 52-week high of $1439.69, according to Benzinga Pro data.

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