SanDisk RSI Hits Record 99, Fueling AI Bubble Fears Across Markets
SanDisk Corporation (NASDAQ: SNDK) has posted a month-to-month Relative Strength Index studying above 99, a stage that analyst Lark Davis says no publicly traded inventory has ever reached.
The excessive studying arrives as SNDK shares rose over 780% year-to-date in 2026 and greater than 5,400% for the reason that firm spun off from Western Digital in February 2025. The inventory now trades close to $2,138, a great distance from its IPO worth of roughly $38.50.
What Is Pushing SanDisk RSI to Historic Levels
SanDisk grew to become a pure-play NAND and solid-state drive firm when it separated from Western Digital in early 2025. The spinoff timing proved ideally suited. Hyperscaler spending on AI infrastructure pulled enterprise SSD demand right into a sustained multi-quarter rally, and SanDisk’s income grew 251% year-over-year in its most up-to-date quarterly report.
The RSI is a momentum oscillator that runs on a scale of zero to 100. Readings above 70 usually sign overbought situations, prompting merchants to contemplate lowering publicity. A studying above 99 sits effectively past that threshold and suggests shopping for stress at SNDK has reached a stage that almost all technical frameworks can not meaningfully interpret.
AI Bubble Fears Grow as SNDK Momentum Peaks
The document SanDisk RSI has reignited debate over whether or not the rally displays sturdy demand or speculative extra. Critics draw comparisons to the dot-com period, the place valuations indifferent from income actuality earlier than a pointy reversal.
Broader AI revenue bubble concerns have unfold by means of the tech sector in 2026, with some analysts flagging round cloud-spending patterns as a structural fragility. Ray Dalio has individually warned of AI liquidity risks that might power buyers to liquidate paper beneficial properties when debt obligations come due.
Bulls argue the underlying demand is structural, not speculative. AI coaching and inference workloads require high-density, fast-access storage, and NAND stays the one know-how able to serving that want at scale. The AMD and Intel overbought RSI surge earlier in 2026 prolonged effectively previous normal warning indicators earlier than momentum stalled, an information level that SNDK advocates cite as a precedent.
A comparable AI stock rally that pushed previous 5,100% finally gave again roughly 35% of its beneficial properties. Whether SanDisk follows the same arc will probably depend upon whether or not hyperscaler capex commitments maintain by means of the again half of 2026.
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