Stocks · News reference
SanDisk shares are sliding Thursday along with other memory and storage chip stocks amid concerns over future chip demand.
Reference Details
Poisar stores the source's headline, summary and market tags for reference. Reporting and full article text remain with the original publisher.
Keep reading
SK Hynix surged 13.30% on October 28, 2026, following record Q3 results with a sevenfold jump in operating profit and an 80% operating margin. The memory chipmaker's strong performance was driven by robust AI-memory demand, with DRAM and HBM production effectively sold out through 2029. Peers Micron Technology and SanDisk also rallied on the positive sentiment around AI-memory demand.
Sandisk stock has declined 45% from its June peak, but historical analysis shows the company is prone to extreme volatility with frequent sharp recoveries. As a major flash memory and storage hardware manufacturer benefiting from AI infrastructure demand, Sandisk has achieved record margins (85% gross margin in Q4 FY2026) due to supply shortages and pricing power. However, investors should expect continued volatility as the industry is cyclical and will cool once supply catches up to demand.
The article compares Lumentum and Sandisk as infrastructure plays in the AI boom. While Sandisk shows explosive growth (175% revenue increase) and trades at a lower valuation (6x forward P/E vs. 40x), the author recommends Lumentum for long-term investors due to its steadier earnings growth, lower pricing risk, and strong demand for optical interconnects as AI models become more complex. Sandisk faces risks from supply-demand cycles and potential margin compression.
SanDisk Storage Malaysia Sdn Bhd was honored with a BrandLaureate SMEs BestBrand Award for its commitment to brand excellence and innovation.