Sandisk Stock Soars 1,100% in 6 Months, Short-Sellers Face Billions in Losses

• Sandisk Corp. shares surged 1,117% in six months and 112% in the first two weeks of January 2026.
• Short-sellers have incurred over $3 billion in mark-to-market losses due to the stock's rapid rise.
• Despite losses, short positions in Sandisk continue to grow, pushing the short squeeze risk to an "extreme" level.
• The surge is attributed to AI-related investments shifting to storage, flash memory shortages, and positive industry outlook from NVIDIA CEO Jensen Huang.
• Sandisk, a California-based storage company, was spun off from Western Digital Corp. and relisted in February last year.

Why It Matters: Sandisk's massive stock rally has caused significant losses for short-sellers, driven by AI and flash memory demand.