SanDisk (SNDK) shares plunged over 13% on Thursday, falling as low as $1,707.58 intraday, as a broad market rotation out of AI hardware and memory chip names into AI software stocks triggered widespread profit-taking. The selloff was driven entirely by momentum unwind, not by any company-specific negative news, and hit SanDisk particularly hard given its staggering 756% year-to-date gains and over 4,200% return over the past 12 months.
Despite the sharp decline, Wall Street analysts maintained their bullish outlook. Bank of America raised its price target from $2,100 to $2,500, with analyst Wamsi Mohan modeling June-quarter revenue of $9.1 billion and EPS of $37.01, well above consensus. Bernstein also increased its target to $3,000, citing new long-term supply agreements that reduce earnings volatility. Mohan expects NAND supply/demand imbalance to persist through mid-2027.
However, risks remain. YMTC (Yangtze Memory Technologies Co.) was flagged as a structural threat—if it shifts from serving China’s domestic market to global competition, NAND pricing could weaken faster. Industry watcher Ming-Chi Kuo warned the memory supply-demand gap will widen through 2027, while Apple lobbies U.S. officials over CXMT for DRAM supply diversification.
Technically, SNDK still trades above its 20-, 50-, and 200-day moving averages, with bullish MA alignment intact, though RSI cooled to 46.62. The stock’s market cap stands near $301 billion.
