SanDisk stock rallies on AI optimism and Fed relief

SanDisk stock rose 4.7% in morning trading Friday, continuing a recovery in the memory chip sector that started Thursday when the stock jumped more than 6% alongside broad gains in semiconductor stocks.

The Thursday rally followed a Federal Reserve rate decision on September 16, when the central bank raised its benchmark rate by 25 basis points to a 3.75% to 4.00% target range, marking its first increase since 2023. Treasury yields and oil prices both declined after the move, reducing pressure on growth and technology stocks and triggering a rebound in AI-related memory stocks.

Nvidia CEO Jensen Huang added support to the sector's recovery at an AI executive summit, projecting that chip sales in 2027 are expected to reach double those of 2026. The forecast reinforces the long-term demand outlook for high-performance storage and memory.

SanDisk has positioned itself as a beneficiary of the AI infrastructure expansion, as AI servers require substantial amounts of high-speed NAND flash storage. Wall Street analysts maintain a consensus Buy rating on the stock with an average 12-month price target of approximately $2,124.

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