SanDisk shares stunned the US market on Tuesday, January 6, 2026, by jumping almost 28% in one trading session. The stock closed at $349.63 after touching an intraday high of $352. The sudden surge left many investors asking the same question, why did the stock rise so sharply? The answer lies in artificial intelligence, tight supply conditions, and SanDisk’s growing role in the global storage market.
Nvidia’s CES speech changed how investors see storage
The clear trigger for the rally was the CES 2026 technology conference. During the event, Nvidia Chief Executive Officer Jensen Huang spoke about the future of artificial intelligence and made it clear that storage and memory are becoming just as important as processing power.
AI systems generate huge amounts of data. That data needs to move in and out quickly for AI models to learn and respond. When investors hear that AI systems will need more storage, they often see it as a direct signal for higher demand for companies like SanDisk.
“For storage, that is a completely unserved market today,” Huang said at the event, adding that the sector could become the largest storage market globally as it holds the working memory of artificial intelligence systems. After these comments, storage-related stocks across the market began rising together, showing that this was a broader theme rather than a move in just one stock.
AI demand is rising while supply remains tight
Another important reason for SanDisk’s rally is the current supply-and-demand situation. Storage products such as NAND memory and enterprise SSDs are facing tight supply at a time when demand is increasing. AI training and AI inference require large volumes of data storage. As more companies build AI systems, they need more memory to support them. This combination of limited supply and rising demand is pushing prices higher and increasing profits for storage makers.
“Tight supply conditions and rising prices, combined with expanding demand for AI training and inferencing, are supporting gains in digital storage stocks,” Bloomberg Intelligence analyst Jake Silverman told Morning Star. He added that Jensen Huang’s comments suggest demand for NAND storage will remain strong across Nvidia’s systems.
SanDisk is taking market share from its rivals
SanDisk’s own business performance has also strengthened investor confidence. Over the past 12 months, the company has increased its share of the NAND market by two percentage points. At the same time, major rivals such as Samsung, SK Hynix and Kioxia have lost market share. This shift tells us that SanDisk is becoming more competitive in a crowded industry, especially as AI-driven demand grows.
New product branding keeps SanDisk in the AI conversation
SanDisk also announced changes that made its future plans easier for investors to understand. Earlier this month, the company introduced new branding for its solid-state drives. Its “Blue” SSDs are now called SanDisk Optimus, while its “Black” SSDs are branded as Optimus GX. The company also launched a new high-performance product called Optimus GX PRO.
According to SanDisk, the new drives are “designed for developers, professionals and gamers in the pursuit of the latest technological breakthrough and uncompromising performance who are looking to build AI PCs, workstations, or high-end PCs.” These changes do not create instant demand, but they indicate that SanDisk sees SSDs and AI-related computing as a major growth engine.
Nvidia and AMD remain at the center of AI discussions, the biggest stock market winners recently have been companies that make memory and storage. In 2025, Western Digital, Micron Technology and Seagate Technology were the three biggest gainers in the S&P 500, with each stock rising more than 200% during the year. As reported by Morning Star, SanDisk, which became an independent company last February and joined the S&P 500 midway through 2025, has delivered even stronger returns. Its stock has surged more than 550% since its spin-off.
SanDisk’s sharp rise did not happen in isolation. On the same day, Micron shares climbed about 10%, Western Digital rose roughly 17%, and Seagate advanced around 14%. As reported by Morning Star, Mizuho trading-desk analyst Jordan Klein said the move followed “bullish comments” from Jensen Huang, who explained how important memory is for AI use cases such as long reasoning and recall using key-value cache in agentic AI systems.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.