SanDisk Corporation (SNDK) shares tumbled 14% in Thursday afternoon trading, reaching a session low of $1,707.58, as a broad rotation out of artificial intelligence chip and memory hardware stocks intensified. The selloff marked a sharp reversal for a stock that had surged approximately 858% in the first half of 2026, leaving it vulnerable to profit-taking amid shifting market sentiment.
The decline occurred despite a flurry of bullish analyst calls. On Tuesday, SanDisk had gained nearly 5% after Bernstein raised its price target, but the positive catalyst was overwhelmed by sector-wide weakness in semiconductors and memory names. The broader technology selloff, which also hit other major indices, contributed to the stock's outsized drop. For context, the Dow slid 207 points as chip stocks led the decline.
Sector-Wide Rotation Pressures Memory Stocks
SanDisk was not alone in Thursday's downturn. Memory storage peers Micron Technology and Western Digital also posted steep losses as the sector entered what market participants described as a technical correction. The combination of profit-taking following SanDisk's rally from its 52-week low of $40.10, weakness across the semiconductor space, and pressure on technology shares drove the decline.
Despite the pullback, SanDisk continues to trade well above its 52-week low, and analysts maintain price targets significantly above current levels. The stock remains above its 20-day, 50-day, and 200-day simple moving averages, with the moving-average structure still in a bullish alignment. The relative strength index stood at 46.62, suggesting more balanced momentum after the recent correction.
Analysts Remain Bullish on Long-Term Prospects
Wall Street analysts have expressed continued confidence in SanDisk's longer-term outlook. On June 30, Bernstein analyst Mark Newman raised his price target to $3,000 from $1,700 while maintaining an Outperform rating. Newman cited new long-term supply agreements featuring fixed or range-bound pricing and upfront financial commitments, which he believes reduce earnings volatility.
Separately, Bank of America analyst Wamsi Mohan reiterated a Buy rating on Wednesday and increased his price target to $2,500 from $2,100. Mohan wrote, "We expect supply/demand imbalance in the NAND market to remain through 2027," adding that pricing should hold up through mid-2027. He projected June-quarter revenue of $9.1 billion and earnings per share of $37.01, exceeding both consensus estimates and the company's guidance range of $7.75 billion to $8.25 billion in revenue. Bank of America recently named SanDisk among its top tech picks for the second half of the year, alongside Nvidia and Meta, in a report highlighting key plays.
China Supply Risks and Technical Picture
Even with the constructive outlook, analysts continue to monitor supply risks from China. Mohan identified Yangtze Memory Technologies Co. (YMTC) as a key long-term risk, noting that additional supply could pressure NAND pricing sooner than expected. His base-case outlook assumes the company will primarily serve domestic Chinese customers.
Industry analyst Ming-Chi Kuo also commented on the memory market, stating that the "memory supply-demand gap will keep widening through 2027." Kuo added that Apple Inc. is lobbying the US administration regarding ChangXin Memory Technologies (CXMT) to secure additional DRAM supply sources.
From a technical perspective, SanDisk's moving averages remain in a bullish configuration, and the stock's recent decline reflects broad-based profit-taking in AI hardware stocks rather than company-specific developments. Investors rotated into AI software names despite continued bullish forecasts from Wall Street analysts.
This article is for informational purposes only and does not constitute financial advice.
