SanDisk (SNDK) Stock Falls Over 13% as AI Rotation Hits Memory Sector

TLDR

• SNDK dropped 13.37% on Thursday as traders rotated out of AI hardware into AI software
• The pullback is profit-taking driven, not company-specific news
• Bank of America raised its price target on SNDK from $2,100 to $2,500, reiterating Buy
• YMTC (Chinese memory maker) flagged as a key structural risk to NAND pricing
• SNDK is still up over 756% year-to-date despite Thursday’s drop

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SanDisk (SNDK) pulled back sharply on Thursday, falling 13.37% as traders unwound positions across AI hardware and memory chip names. The stock was trading at $1,980.68 in premarket, down 2.54%, before the session accelerated to the downside.

Sandisk Corporation, SNDK

The move is tied to a broad sector rotation. Money is moving out of high-momentum AI hardware plays and into AI software stocks, a pattern that tends to hit names with the biggest year-to-date gains the hardest.

There is no new company-specific bad news driving the drop. This is a momentum unwind.

SNDK entered the week up 756.10% year-to-date and 4,297.79% over the past 12 months. When a stock runs that hard, profit-taking can come fast and hard.

Despite Thursday’s session, Wall Street’s view on the stock hasn’t shifted. Bank of America analyst Wamsi Mohan reiterated a Buy rating on Wednesday and raised his price target from $2,100 to $2,500.

Mohan is modeling $9.1 billion in revenue for the June quarter, along with earnings per share of $37.01. Both figures top consensus estimates and the company’s own guidance range of $7.75 billion to $8.25 billion in revenue.

“We expect supply/demand imbalance in the NAND market to remain through 2027,” Mohan wrote, adding that pricing should hold through mid-2027. Bernstein also raised its price target on the stock recently.

China Supply Risk in Focus

One risk traders are keeping a close eye on is Chinese memory production. Mohan flagged Yangtze Memory Technologies Co. (YMTC) as a structural concern, warning that new supply from the Chinese chipmaker could push NAND prices down faster than expected.

His base case assumes YMTC stays focused on domestic customers rather than competing in global markets. If that assumption breaks, it changes the supply picture meaningfully.

Industry analyst Ming-Chi Kuo added to the conversation over the weekend, saying the “memory supply-demand gap will keep widening through 2027.” Kuo also noted that Apple is actively lobbying the U.S. administration over ChangXin Memory Technologies (CXMT) to secure more DRAM supply options.

Where the Stock Stands Technically

Even after Thursday’s drop, the longer-term trend structure is still intact. SNDK is trading 1.9% above its 20-day SMA ($1,956), 25.1% above its 50-day SMA ($1,593), and 186.7% above its 200-day SMA ($695).

The moving average stack — 20-day above the 50-day, 50-day above the 200-day — remains in bullish alignment.

RSI sits at 54.24, off overbought territory and not yet in oversold range. That’s a cooler reading after an extended rally.

Key resistance sits at $2,354.50, near the recent 52-week high of $2,354.39. Key support is around $1,861, the nearest pivot below current price.

SNDK’s market cap stands at $301 billion. Average daily trading volume is 13.5 million shares.