SanDisk Leads Memory Stocks Lower: A Look Inside the Rout
SanDisk plunged nearly 20% as AI and memory stocks sold off after election results raised fears of data-center delays and weaker chip demand.
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Western Digital Corporation shares fell significantly following reports that incoming Democratic senators are calling for a slowdown in the development of artificial intelligence data centers.
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SanDisk plunged nearly 20% as AI and memory stocks sold off after election results raised fears of data-center delays and weaker chip demand.
Sandisk (NASDAQ: SNDK) fell almost 8% premarket as post-midterm tech rotation hit memory chips, leaving analysts divided over further downside or a year-end rally.
Western Digital Corporation has issued financial projections for the second quarter and full fiscal year 2027, anticipating continued gross margin expansion and revenue growth.
Meta Platforms and Sandisk announced their first-ever forward stock splits to make shares more accessible to retail investors. Meta is conducting an unorthodox 2-for-1 split through a new non-voting share class, while Sandisk approved an aggressive 8-for-1 split following a 6,000% rally since its February 2025 spinoff from Western Digital. Both companies are benefiting from AI demand, though Sandisk faces cyclical risks in the memory storage market.
Sandisk announced an 8-for-1 stock split effective Nov. 20, 2026. However, the article emphasizes that stock splits don't fundamentally change a company's value or make it a better investment. The key factor for Sandisk investors should be the outlook for the memory and storage market shortage, not the split itself. At single-digit P/E multiples, Sandisk appears cheap, but this valuation depends on sustained high demand continuing.
Sandisk stock jumped over 5.5% to $1,134 on Tuesday as AI data center demand surged and a $93.9 billion long-term supply pipeline sparked a powerful memory sector rebound.