Why Sandisk Surged on Thursday

Sandisk Corporation shares moved higher on Thursday, driven by a broad rally in the memory chip maker sector.

The move comes following NVIDIA Corporation's second-quarter earnings report, which was released after the close on Wednesday.

Sandisk shares are reacting to NVIDIA's strong performance. Nasdaq futures rose 1.04%, while S&P 500 futures gained 0.44%.

Nvidia Beats on Both Metrics

Nvidia reported second-quarter revenue of $96.22 billion, up 106% year-over-year. The revenue figure surpassed the Wall Street consensus estimate of $92.18 billion.

Adjusted earnings per share came in at $2.22, beating the market consensus of $2.10.

Data center revenue rose 117% year-over-year to $89 billion. Edge computing revenue grew 27% to $7.2 billion.

Gross margin for the quarter was 75%, up from 74.9% in the prior quarter and 72.4% in the same period last year.

Key Support and Resistance Levels

From a trend perspective, Sandisk shares remain extended on longer timeframes: the $1,566.00 price sits 63.8% above its 200-day simple moving average, which points to a larger uptrend despite recent volatility. Meanwhile, the stock is 3.3% below its 50-day simple moving average, indicating the stock has been digesting gains rather than accelerating higher.

Momentum is best measured by the Relative Strength Index, which currently stands at 49.34—essentially neutral—suggesting the stock is not overextended in either direction at this time.

The moving average structure is mixed: the 20-day simple moving average is below the 50-day simple moving average, but the 50-day remains above the 200-day simple moving average. This combination typically appears when a strong uptrend pauses to digest excess momentum before the next directional move.

Key resistance: $1,696.50—a nearby high that also aligns with the 50-day simple moving average area, where a rally could stall if buyers fail to follow through.

Key support: $1,485—a nearby low that aligns with the stock's short-term trend zone, where dip buyers may attempt to defend.

SNDK Price Action: In Thursday pre-market trading data, Sandisk shares rose 4.44% to $1,565.87.