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SanDisk 2x ETFs were down over 20% premarket despite the memory giant's 437% YoY data center revenue surge. Cautious guidance was to blame.
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SanDisk stock has collapsed by approximately 64-65% since June 2026, primarily due to increasing regulatory risk that spooked investors. The company is undergoing an 8-for-1 stock split on November 19, 2026. Despite the sharp decline, there is debate among analysts about whether this represents a generational buying opportunity or a value trap.
SanDisk stock has plummeted 65% from its June peak despite strong current financials driven by AI infrastructure demand and memory chip shortages. While the stock appears cheap at a P/E of 3.5, the author warns investors to avoid buying ahead of the November 19 stock split, citing the cyclical nature of the memory chip market. The author projects that when supply normalizes and pricing power diminishes, SanDisk's earnings could collapse significantly, making the stock potentially overvalued at current levels.
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Sandisk stock flashes oversold signals as shares sink below key moving averages amid mounting AI and competition fears.
Sandisk stock has plummeted 64% from its June peak of $2,335 to around $806, driven by AI data center stock sell-offs following the November 3 midterm elections. Despite the sharp decline, the company's earnings continue to grow—adjusted EPS reached $49.51 in fiscal Q1 2027 with guidance for $55-$57 in Q2, though growth rates are slowing. The analyst suggests the stock is now fairly valued at current levels, trading at less than 4 times annualized earnings, and would consider buying at around $900 per share (or $112 post-split), viewing the current price as reasonable for a cyclical memory company.
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