News Global SanDisk Corp. Shares Surge 1,117% in Six Months, Inflicting $3 Billion Loss on Short-SellersSanDisk Corp. Shares Surge 1,117% in Six Months, Inflicting $3 Billion Loss on Short-Sellers
SanDisk Corp. shares have surged 1,117% in six months and doubled in the first two weeks of 2026, resulting in over $3 billion in mark-to-market losses for short-sellers. Despite mounting losses, short interest has increased from 4% to 7.5% of float, creating an extreme short squeeze risk according to S3 Partners. The rally is driven by AI storage demand, flash memory shortages, and positive industry commentary from Nvidia's CEO.
*this image is generated using AI for illustrative purposes only.
SanDisk Corp. has emerged as one of the market's most spectacular performers, with shares delivering extraordinary gains that have caught short-sellers off guard and resulted in billions in losses. The storage company's remarkable rally shows no signs of abating, creating what analysts describe as an extreme short squeeze scenario.
Exceptional Stock Performance
SanDisk's shares have demonstrated unprecedented momentum across multiple timeframes. The stock doubled in just the first two weeks of 2026, representing a 112% gain in that brief period. However, this recent surge is part of a much larger rally that has seen the stock climb 1,117% over the past six months.
| Performance Period | Gain |
|---|---|
| First two weeks of 2026 | 112% |
| Last six months | 1,117% |
| Since February 2025 spin-off | 1,300% |
Short-Seller Losses Mount
The relentless rally has inflicted severe damage on bearish traders who bet against the stock. According to research from S3 Partners, short-sellers have accumulated mark-to-market losses exceeding $3 billion as the stock price continues its upward trajectory.
Despite these mounting losses, short-sellers have paradoxically increased their positions. Short interest has risen significantly from 4% to 7.5% of SanDisk's total float, indicating that bearish traders continue to add to their positions even as losses accumulate.
| Short Interest Metrics | Current | Previous |
|---|---|---|
| Short Interest (% of float) | 7.5% | 4.0% |
| Mark-to-market losses | >$3 billion | - |
| S3 Risk Score | 82.5 | - |
Extreme Short Squeeze Risk
S3 Partners has assigned a risk score of 82.5 to SanDisk, a level the firm characterizes as "extreme." This elevated risk score reflects the potential for a short squeeze, where rapid price increases force short-sellers to buy back borrowed shares to close positions, potentially driving prices even higher.
Market Drivers Behind the Rally
Several fundamental factors have contributed to SanDisk's exceptional performance:
- AI Storage Demand: The artificial intelligence trade has expanded into storage stocks, benefiting companies like SanDisk
- Flash Memory Shortage: Supply constraints in flash memory have enabled the company to implement price increases
- Industry Validation: Nvidia CEO Jensen Huang's remarks at the CES Technology conference highlighted storage as a "completely unserved market"
Company Background
California-based SanDisk specializes in high-performance storage solutions, including storage drives, memory cards, and USB flash drives. The company operates as part of Western Digital Corp.'s flash memory business but was spun off and re-listed in February 2025. Since the spin-off, shares have gained 1,300%, with the majority of these gains occurring in the recent six-month period.
The combination of strong fundamental drivers, technical momentum, and extreme short positioning has created a unique market dynamic that continues to favor SanDisk shareholders while penalizing bearish traders.
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