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SanDisk stock surges after Situational Awareness reshuffles AI bets
SanDisk shares have risen 572% year-to-date, even after Situational Awareness faced margin calls during July’s selloff in AI-linked stocks.
SanDisk Corporation, the NAND flash memory supplier, remains a central name in the AI memory trade after Situational Awareness disclosed a major increase in exposure to the company.
Yahoo Finance reports that the hedge fund, founded by former OpenAI researcher Leopold Aschenbrenner, built Sandisk into its largest holding before July’s sharp selloff in AI-related stocks nearly drove the fund to collapse. The fund’s prior high-conviction, leveraged approach helped during the AI surge, but it contributed to losses as memory and semiconductor stocks tumbled, forcing the fund to liquidate positions to meet margin calls.
The outlet says the focus now turns to what the episode means for Sandisk and the broader AI trade. Sandisk was spun off from Western Digital last year, and its NAND flash chips are used in AI data centers and in consumer devices, supporting the company’s role in the memory boom.
Yahoo Finance adds that SanDisk’s market capitalization is $83.5 billion and that the stock has climbed 572% year-to-date. The article also notes the shares rebounded after Citadel’s deal to acquire most of Situational Awareness’s public equity holdings helped trigger a rally across memory stocks.