SanDisk Corporation (NASDAQ:SNDK) stock experienced a significant upward movement on Thursday. The price action follows a public confirmation from Apple Inc. CEO Tim Cook regarding a structural memory shortage. The statement validated the pricing power of memory manufacturers as electronic component costs continue to rise.
Apple Details Supply Chain Adjustments
The surge in SanDisk shares materialized after a Wall Street Journal interview with Cook published on Wednesday. Cook stated that Apple plans to increase prices across its product lineup due to escalating storage and memory component expenses.
"Unfortunately, price increases are unavoidable," Cook said in the interview. "We're doing our best to mitigate the huge increases that are being passed to us, but the situation has become unsustainable."
Industry Demand Diverts Storage Supply
The memory constraint stems from a reallocation of DRAM and NAND supply toward artificial intelligence infrastructure. Massive capital expenditure expansions initiated last year by Alphabet Inc., Microsoft Corp., Meta Platforms Inc. and Amazon.com Inc. have driven a fourfold increase in chip prices.
Cook emphasized the unprecedented scale of the current commodity cycle, drawing from his history at IBM, Compaq and Apple. "This is a 100-year flood," Cook told the Wall Street Journal, adding, “I’ve never seen anything like it in any area in over 40 years.”
Critical Levels To Watch for SNDK Stock
SNDK is in a steep uptrend across timeframes, underscored by its 12-month gain of 4565.38% and a price that's stretched well above its major trend gauges. The stock is trading 26.5% above its 20-day SMA, 58.6% above its 50-day SMA, 117.6% above its 100-day SMA, and 261.1% above its 200-day SMA—classic extended leader behavior.
The moving-average structure stays bullish, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA, signaling the intermediate and long-term trend are aligned higher. The stock is also trading above its prior 52-week high ($2167.33), which can act like a breakout trigger as long as it holds.
- Key Resistance: $2167.33
- Key Support: $1720.47
SNDK Stock Price Activity: SanDisk shares were up 10.38% at $2162.10 at the time of publication on Thursday, according to Benzinga Pro data.
Image via Shutterstock
Login to comment