The explosive rally in SanDisk Corp (SNDK  ) is rapidly spilling over into the ETF market, where leveraged funds tied to the AI storage play are turning into some of Wall Street's most volatile momentum trades.

The standout has been Tradr 2X Long SNDK Daily ETF (SNXX  ), which has surged nearly 640% since its late-January debut. The fund climbed dramatically outperforming the already blistering rise in SanDisk shares.

Meanwhile, T-REX 2X Long SNDK Daily Target ETF (SNDU  ), launched in March, has gained roughly 370% in just a few months, underscoring growing investor appetite for leveraged exposure to one of the market's hottest AI infrastructure trades.

AI Storage Boom Powers SanDisk Frenzy

The gains come as SanDisk continues to dominate the narrative on AI memory and storage. The stock has soared more than 4,000% since its February 2025 spin-off from Western Digital Corp (WDC  ), making it one of the most dramatic winners of the AI era.

The rally is increasingly drawing comparisons to prior speculative technology booms. Investor Michael Burry recently warned on X that the move appears "more extreme" than the late-1990s dot-com bubble, noting that SanDisk's gains have eclipsed even the historic run in Qualcomm Inc (QCOM  ) during the internet frenzy.

At the same time, short interest in SanDisk has climbed from 8.06 million shares to 9.75 million shares, representing more than 10% of the public float, suggesting some traders are betting the rally may be overheating.

Tight NAND Supply Adds Fuel To The Trade

Bullish sentiment around AI infrastructure remains powerful, particularly in the storage segment. SanDisk recently reported third-quarter revenue of $5.95 billion, up 251% year over year, while Evercore ISI analyst Amit Daryanani highlighted the company's roughly 80% gross margins and ongoing tightness in NAND supply that could persist through 2028.

CNBC's Jim Cramer also recently pointed to favorable industry dynamics benefiting storage firms including Micron Technology (MU  ), SanDisk, Western Digital and Seagate Technology Holdings (STX  ). According to Cramer, years of weak profitability discouraged aggressive capacity expansion before the AI boom arrived, leaving the industry with constrained supply just as hyperscaler demand accelerated.

Leveraged ETFs Become The New AI Momentum Trade

The SanDisk-linked rally is also highlighting a broader shift in ETF trading behavior, where investors are increasingly seeking amplified exposure to niche AI winners rather than relying solely on diversified semiconductor funds.

The phenomenon mirrors earlier waves of speculative enthusiasm seen in leveraged ETFs tied to mega-cap AI and crypto-related stocks. However, SanDisk-linked products may represent one of the clearest examples yet of single-stock ETF momentum feeding off an already parabolic equity rally.

For now, the AI storage trade remains one of Wall Street's most crowded bullish bets, and leveraged ETF traders appear focused on riding the momentum higher.