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SanDisk Shares Fall About 25% in Four Days After Rapid Rally

Analysts remain bullish given $42 billion in multiyear AI supply contracts that lock in revenue visibility ahead of an August 5 earnings report.

Overview

  • The stock dropped roughly 24.8% over four trading days in mid‑July as momentum unwound and profit‑taking followed a dramatic year‑long rally.
  • Company results through June show triple‑digit revenue and EPS growth and a return to profitability in fiscal 2026, which underpinned the earlier surge.
  • Management reported roughly $42 billion in multiyear supply commitments to cloud AI customers that lock in volumes and prices for years.
  • Wall Street maintains a consensus Buy rating with average targets well above current levels and several firms assigning $2,500–$3,000 objectives, while forward EPS estimates make the stock appear inexpensive on that basis.
  • Key near‑term risks and catalysts include the August 5 earnings report, the pace of new NAND capacity coming online (including potential faster output from Chinese makers), and volatile investor positioning that can amplify price swings; SanDisk was spun out from Western Digital in early 2025 to focus on NAND and enterprise SSDs.