SanDisk Short Interest Surges, S3 Warns of Extreme Short Squeeze Risk

Short interest in SanDisk Corp (SNDKV-US) has surged to extreme levels as the stock price climbs, according to data from S3 Partners LLC. The short interest ratio has risen from approximately 4% at the start of November to 7.5%, with losses on short positions estimated at $3 billion. S3's short squeeze risk score now stands at 82.5, indicating a heightened risk of forced short-covering as prices rise. The surge in short interest coincides with SanDisk's 112% year-to-date gain, far outpacing the S&P 500's 1% increase. Analysts attribute the rally to artificial intelligence-related investment themes and tight global flash memory supply, which has allowed the company to raise prices. Following Nvidia CEO Jensen Huang's remarks at CES emphasizing growing memory demand, SanDisk shares experienced a sharp spike. The stock has soared over 1,300% since Western Digital spun off its flash memory business in February 2025.