SanDisk stock surged over 100% in 2026. J.P. Morgan issued a cautionary note despite this performance. The firm set a price target of $235 per share. This target implies a potential 53% drop from current levels around $500.
The warning comes amid extreme bullishness for memory and storage companies. The AI boom and supply shortages drive this trend. These shortages are expected to persist through the year. J.P. Morgan’s concern centers on SanDisk’s lofty valuation, though the firm acknowledges the company’s strong near-term fundamentals.
Reports highlight increasing short interest in the stock. Short sellers have incurred mark-to-market losses of around $3 billion. S3 Partners states this elevated the risk of a short squeeze to "extreme" levels.