In recent years, Sandisk (SNDK) has seen a major rally coinciding with the performance of the Russell 2000 iShares ETF (IWM). However, with SNDK stock up 169% and signs of the IWM stalling, a short squeeze may moderate soon.

Sandisk benefits from NAND flash memory demand due to the AI boom, but Micron (MU) is seen as a better investment. SNDK was spun off from Western Digital (WDC) and specializes in NAND memory, experiencing a surge in operating cash flow and stock price.

Both SNDK and the IWM have lost momentum recently, with SNDK up 100% in January. Macro issues like US-Europe relations and a potential government shutdown are affecting the IWM’s performance, likely impacting SNDK as well.

Competition in the flash NAND market presents challenges for Sandisk compared to Micron’s success in the HBM sector. Micron’s growth is attributed to AI chip demand, giving it an advantage over SNDK in the long run.

Sandisk’s development of High Bandwidth Flash (HBF) memory could impact future performance, but it may not launch until late 2027. Micron’s lower forward P/E ratio and market capitalization make it a more stable investment compared to SNDK.

The future of SNDK and its potential with HBF technology remains uncertain, while Micron’s position in the market and lower volatility make it a more attractive investment choice.

Read more at Yahoo Finance: An Extreme Short Squeeze Is Underway in Sandisk Stock. How Much Higher Can Shares Go?