SNDK has surged 100% YTD to a $71B market cap as the AI trade rotates to storage. This shift follows NVDA’s Jan. 6 declaration that AI storage is a "unserved" market.

Global flash scarcity allows SNDK to double prices, as demand currently outpaces supply. Analysts have doubled price targets reflect massive margin expansion.

A Squeeze Risk Score of 82.5 and $3B in losses signal risk. Short interest has climbed to 7.5% as both realized volatility and option open interest rise with short interest.

SNDK continues its record-breaking performance this year. By late January, the stock is already up more than 100% YTD after gaining 600% last year. It is currently a $71 billion company.

The AI trade has rotated from processors (NVIDIA) to storage. SNDK surged 27% on Jan 6 following comments from NVIDIA’s CEO regarding the necessity of highcapacity storage for AI scaling.

SNDK benefits from the global scarcity of flash memory and plans to double prices in 2026. Because demand is only half-fulfilled, SNDK maintains significant pricing power.

Consequently, the stock has been upgraded, with some price targets almost doubling.

According to S3 real-time short interest data, short interest has been rising since the beginning of November, climbing from 4% to 7.5% of the float. Short sellers have moved in lockstep over the last few months, utilizing a reversal strategy by shorting aggressively into the rally.

With both the stock price and short interest rising, the short squeeze risk score has hit 82.5. The score reached this level in September and October, triggering a notable squeeze event in the fourth quarter.

Since November realized volatility has been rising, while implied volatility has remained in a range.

Volatility

Option Open Interest

This increase in short interest has coincided with the rise in realized volatility, marking SNDK as a crowded trade.

Additionally, total option open interest has mirrored the rise in short interest since November.

Mark-to-market (MTM) losses have now reached $3 billion, driving the short squeeze score to its current extreme level.

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