SanDisk: Record Revenues Can’t Shield the Stock from a Sector-Wide Reckoning

The memory-chip maker is living a split-screen reality. On one side, quarterly revenues surged 251% to $5.95 billion and management guided for earnings per share of $30 to $33 in the current period. On the other, the stock plunged 7.31% on Friday to $1,630.99 as a broad shakeout in artificial-intelligence stocks erased nearly all the gains from the previous week’s rally.

The immediate trigger came from across the semiconductor pond. Broadcom’s latest quarterly results missed certain analyst estimates related to AI-driven revenue, sparking a sector-wide selloff that swept up SanDisk along with peers Micron and Western Digital. The rout was amplified by a growing unease about whether the current capital-spending cycle on AI infrastructure can sustain the blistering pace set earlier this year.

Macroeconomic headwinds added to the pain. The U.S. jobs report for May showed 172,000 new positions, coming in stronger than expected and fueling speculation that the Federal Reserve will keep monetary policy tighter for longer. Growth-oriented technology stocks are notoriously sensitive to rising interest rates, and the Nasdaq slid on the day as capital rotated into defensive sectors such as financials and health care — the Dow Jones Industrial Average actually hit a fresh record high on that same rotation.

Yet beneath the market’s jitters, SanDisk’s fundamental story remains remarkably robust. The company is now the most valuable constituent of the Russell 2500 Index, and its year-to-date gain still stands at an eye-popping 492.57%. The shares touched a 52-week high of $1,861.00 as recently as June 3, meaning the current price sits 12.36% below that peak. Trading volume remains elevated and volatility is high as investors reposition.

Should investors sell immediately? Or is it worth buying SANDISK?

The Q3 fiscal 2026 results — covering the period ended in May — painted a picture of a company riding a wave of insatiable demand for DRAM and NAND flash memory. Revenue came in well above expectations, and the profit outlook for the current quarter underscores the pricing power SanDisk still holds. Analysts at several major banks have raised price targets, with some going as high as $3,250, citing sustained demand for DRAM and the growing role of NAND in AI inference workloads.

Not everyone is ready to join the chorus. Some strategists warn about the inherently cyclical nature of the memory market and the risk of supply gluts. The stock’s relative strength index sits at 59.0 after the correction — squarely in neutral territory and far from oversold levels that would signal a sharp reversal is imminent. Still, retail investors appear to be using the dip as an entry point, and the expected expansion of enterprise solid-state drives should provide a long-term tailwind.

The next major checkpoint arrives on July 10, when SanDisk reports its quarterly earnings. That report will either reignite the AI narrative — if the numbers once again blow past expectations — or confirm the market’s fear that the rally has run ahead of reality. For now, the stock sits in a tug-of-war between record operational performance and a skeptical tape.