Wall Street trading giant Jane Street Capital just made a big bet on one of the market’s most unpredictable AI plays.
The quantitative trading firm disclosed a sharp jump in its stake in SanDisk, the flash memory maker that split off from Western Digital last year.
According to regulatory filings complied by Tikr, Jane Street now holds one of its largest single stock positions in the company, trailing only its stake in the SPDR S&P 500 ETF Trust.
Valued at a market cap of $269 billion, SNDK stock has returned over 3,000% in the last 12 months. However, it is also down 36% from all-time highs.
For a stock that has swung wildly through 2026, Jane Street’s conviction stands out.
Jane Street boosts SanDisk stock stake
According to a 13G filing with the Securities and Exchange Commission dated July 29, Jane Street held 7.41 million shares of SanDisk (SNDK), worth roughly $9 billion. It makes SanDisk the firm’s second largest holding overall, at 5.47% of its total portfolio.
The filing shows Jane Street added 6,251,642 shares, up nearly 540% from its prior position.
The firm now owns just over 5% of all SanDisk shares outstanding, a stake large enough to require public disclosure.
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Only Jane Street’s SPY position, worth about $33 billion, ranks higher in the firm’s portfolio.
Based on the filing, SanDisk now sits ahead of Amazon, Nvidia, and Microsoft on the firm’s list of top holdings.
Why SanDisk stock price has taken off in 2026
SanDisk makes NAND flash memory chips, used in phones, laptops, and massive AI data centers.
The company separated from Western Digital in February 2025 and has since leaned significantly into the data center business.
A year ago, data center sales accounted for 12% of SanDisk’s bit shipments. By the end of fiscal 2026 (ended in June), the number climbed to 38%. Full-year data center revenue rose 437% year over year to $5.15 billion.
“We expect data center share of total TAM to expand from approximately 30% in calendar year 2025 to approximately 50% in calendar year 2026, and to continue outpacing the market in 2027,” SanDisk CFO Luis Visoso stated.
“Demand from our customers is growing faster than our supply. We therefore expect bits to remain on allocation beyond calendar year 2027.”
The broader NAND flash market is booming too, fueled by AI inference demand.
Chief Executive David Goeckeler said the market is expected to top $300 billion in 2026 and approach $500 billion in 2027.
- SanDisk’s full-year revenue reached $20.25 billion, up 175% year over year.
- Non-GAAP gross margin climbed to 84.6% in the fourth quarter, up from just 26.4% a year earlier.
- Non-GAAP earnings per share hit $39.25 for the quarter, compared with $0.29 in the same period last year.
New contracts reshape the SanDisk stock story
Instead of negotiating prices with customers every quarter, SanDisk signs what it calls New Business Models, or NBMs, long-term supply agreements with its biggest buyers.
SanDisk currently has NBMs with eight customers, including three U.S. hyperscalers. Visoso said these deals average more than four years in length, with total expected revenue of at least $93.9 billion.
Related: JPMorgan revamps SanDisk stock with massive price target
The remaining performance obligation tied to these agreements stood at $91.1 billion, including two deals signed after the quarter closed.
The contracts also carry $16.5 billion in financial guarantees, meant to protect SanDisk if a customer fails to meet its purchase commitments. Visoso said the company expects roughly 80% gross margins on this business, even at the lowest agreed pricing.
Goeckeler told investors during the Aug. 13 Analyst Day that the shift moved SanDisk from just three months of demand visibility to more than four years, in the span of two quarters.
What is the SanDisk stock price target?
SanDisk is also investing in newer technology called High Bandwidth Flash, or HBF, aimed at AI inference workloads.
The company said it had taped out its first HBF memory chip and expects to ship samples to customers next year.
Chip industry veteran Jim Keller, chief executive of Tenstorrent, recently joined SanDisk’s technical advisory board to help guide the project.
However, investing in SanDisk carries certain risks. The tech stock has a reputation for sharp swings, and the memory chip industry has a long history of boom-and-bust cycles.
Goeckeler himself referenced the industry’s rough 2023, when oversupply crushed prices across the sector.
Out of the 16 analysts covering SNDK stock, 14 recommend “Buy,” and two recommend “Hold.” The average SanDisk stock price target is $2,203, 48% above the current price target.
Jane Street’s filing does not include a price target or public commentary on where the firm expects SanDisk shares to head next. As a trading and market-making firm, Jane Street typically does not publish investment theses the way traditional research analysts do.
Still, a stake increase of that size in one of the market’s most volatile AI-related names sends its own message about where big money sees value right now.
Related: SanDisk sends strong signal to Micron investors, BofA says
