SanDisk Corp. (SNDK) surged 5.03% during Monday's intraday session, staging a sharp recovery as semiconductor stocks broadly rebounded. The memory chip maker had initially faced selling pressure in pre-market trading after industry peer Kioxia reported quarterly results that fell short of market expectations, dragging down the storage sector.

The turnaround in SanDisk and other chip names coincided with a broader market rally, as Wall Street's main indexes opened higher on renewed hopes of de-escalating tensions in the Middle East. The improving risk appetite, combined with bargain hunting after SanDisk's steep 47% decline in July, helped fuel the intraday rebound.

Supporting the bullish sentiment, options market activity revealed that institutional investors had placed aggressive upside bets on SanDisk, including a $109.64 million call double-buy strategy, reflecting strong conviction for continued gains ahead of the company's upcoming quarterly earnings report.