SNDK Stock Rebounds Above $1,500 as TSMC Price Hike Signals Strong Chip Demand, But Memory Risks Keep Investors Cautious

Quick overview

SanDisk shares have rebounded sharply after falling toward $1,328, with stronger semiconductor sentiment and expectations for robust AI-related memory demand helping the stock reclaim $1,500, although cyclical and competitive risks remain.

SanDisk Stock Reclaims $1,500 as Memory Sector Sentiment Improves

SanDisk (SNDK) shares are attempting to recover after a sharp selloff pushed the stock below the important $1,500 level and toward $1,328 last week.

The decline came as concerns over weakening memory pricing, rising Chinese competition, and broader weakness across semiconductor stocks triggered heavy selling throughout the technology sector.

However, sentiment has improved this week.

SanDisk shares surged approximately 14% on Tuesday, allowing the stock to reclaim the $1,500 level as investors returned to semiconductor stocks and reassessed the outlook for artificial intelligence-related memory demand.

The rebound has also been supported by renewed analyst optimism, with some analysts upgrading SanDisk to a Buy rating amid increased confidence in the company’s long-term earnings potential.

Nevertheless, the recovery remains vulnerable. Investors continue to debate whether strong AI demand can offset the cyclical nature of memory markets and the risk of increasing global supply.

TSMC Price Increase Signals Strong Chip Demand

One of the catalysts supporting the broader semiconductor recovery has been a report that Taiwan Semiconductor Manufacturing Company (TSMC) could raise contract chip manufacturing prices by up to 10% in 2027, with some products potentially seeing increases of as much as 20%.

The reported price increases are being attributed to rising costs for materials, semiconductor manufacturing equipment, and the construction of new overseas facilities.

Investors have interpreted the potential price increases as evidence that demand for advanced chips remains exceptionally strong.

This could indirectly benefit SanDisk.

Artificial intelligence chips require high-performance memory to process and handle increasingly complex workloads, particularly during AI inference. As AI infrastructure expands, demand for memory products could also increase.

SanDisk could therefore benefit if strong AI chip demand continues driving investment across the broader semiconductor supply chain.

However, the relationship is not guaranteed, and the company remains exposed to the broader memory cycle.

Chinese Competition Creates New Long-Term Risks

The latest SanDisk selloff was partly driven by growing concerns about China’s rapidly expanding semiconductor industry.

ChangXin Memory Technologies, or CXMT, has emerged as a major player in the DRAM market and continues investing heavily in production capacity.

Reports that Apple is testing CXMT memory chips for devices sold in China have raised concerns about the potential growth of domestic Chinese memory suppliers.

Nio has also reportedly invested $23.3 million in CXMT, highlighting increasing support for China’s semiconductor ambitions.

While these developments are unlikely to materially affect SanDisk’s near-term financial results, they could create longer-term pressure across the global memory industry.

If Chinese manufacturers continue improving technology and expanding capacity, pricing power could eventually weaken.

Technical Reversal Signals Weakening Momentum

SanDisk’s recent price action has significantly weakened its technical outlook.

After reaching an all-time high near $2,354, the stock has experienced an aggressive correction, breaking below several important support levels before testing the $1,500 area for a second time.

SNDK Chart Daily – Will the 50 SMA Turn Into Resistance Now

With selling pressure accelerating, traders pushed the price below the $1,500 region after the 50-day moving average in yellow was broken. But the 100 SMA in green held as support at $1,330 and we’re seeing a rebound, but buyers will have to push above MAs to resume the uptrend.

Investors Reassess the Memory Cycle

The recent volatility also reflects growing uncertainty over the sustainability of the current memory boom.

Demand from AI infrastructure, cloud computing, and enterprise storage has helped drive expectations for stronger pricing and profitability.

However, memory markets have historically followed a boom-and-bust cycle.

Periods of supply shortages and elevated prices often encourage manufacturers to expand production aggressively. Once new capacity comes online, supply can eventually exceed demand, resulting in falling prices and weaker margins.

That possibility is becoming an increasing concern for investors.

The question is whether AI demand represents a structural shift capable of supporting long-term growth or whether the current strength will eventually give way to another cyclical downturn.

SanDisk and Kioxia Advance 3D NAND Technology

Despite the market concerns, SanDisk continues making progress in advanced memory technology.

The company recently announced a manufacturing milestone with its long-term partner Kioxia, commencing production of tenth-generation 3D NAND flash memory at the Fab2 facility within Japan’s Kitakami manufacturing complex.

The expansion is designed to increase production capacity for advanced storage products serving enterprise computing, hyperscale cloud infrastructure, AI applications, and next-generation data centers.

The technology incorporates CMOS directly Bonded to Array, or CBA, architecture, which is intended to improve performance, power efficiency, and storage density.

The development highlights SanDisk’s technological progress, although the announcement received limited attention while broader semiconductor concerns dominated investor sentiment.

Capacity Expansion Raises Oversupply Concerns

The semiconductor industry’s aggressive expansion plans remain another source of uncertainty.

Major memory manufacturers are investing heavily to increase production capacity in anticipation of rising demand from AI and cloud computing.

While that investment could support long-term growth, it also creates the possibility of excess supply if demand eventually slows.

For SanDisk, the balance between demand growth and production capacity will remain critical.

The stock’s rebound above $1,500 suggests investors are becoming more optimistic, but the recovery is not yet secure.

Strong AI-related demand and improving semiconductor sentiment could support further gains, while Chinese competition, cyclical memory pricing, and rising global capacity remain potential headwinds.

For now, SanDisk’s long-term technology story remains compelling, but investors may continue to approach the stock cautiously until there is greater clarity that demand can absorb the industry’s rapidly expanding supply.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

SanDisk SNDK Stock Retests $1,500 as Memory Fears on NAND Competition Return and Supply Risks

6 days ago

Save

SNDK Stock Tests Critical $1,500 Support as It Slides Toward $1,250 Following Samsung Preliminary Earnings

2 weeks ago

Save

SanDisk SNDK Stock Risks Breakdown If the Support Goes, Despite NAND Expansion and MS Price Target Raise as Asian Chip Selloff Weighs

2 weeks ago

Save