SanDisk Corp. (SNDK) shares surged 6.11% in the 24-hour period on Wednesday, as investors reacted positively to a report suggesting a potential boom in server-memory prices. The rally was fueled by optimism surrounding Nvidia's strategic shift in memory technology for AI servers, which could significantly benefit memory manufacturers like SanDisk.

According to a report from Counterpoint Research, Nvidia's decision to switch to smartphone-style LPDDR (Low-Power Double Data Rate) memory for AI servers could lead to a doubling of server-memory prices by late 2026. This move is expected to create a sudden surge in demand that the industry may struggle to meet, potentially resulting in a "seismic shift" in supply chains and pricing dynamics.

The positive sentiment wasn't limited to SanDisk alone. Other memory chip makers also saw gains in the broader market session, with Micron Technology up 2.8%, Western Digital advancing 1.06%, and Seagate Technology rising 0.75%. This sector-wide movement underscores the potential impact of Nvidia's strategic shift on the entire memory chip industry, with SanDisk well-positioned to capitalize on the emerging trend in the AI server market.