Sandisk Plunges 55% in ~25 Days After Peak as Investors Fear Memory Competition and Spot Price Collapse

A general downward movement affected semiconductor and memory stocks (Micron, Kioxia, SK Hynix, AMD).

Written by: Olumide Adesina • Tuesday, July 28, 2026 • 2 min read

• Last updated: Tuesday, July 28, 2026

SanDisk Stock Slumps Again as Chinese Competition and AI Uncertainty Weigh on Investors

Sandisk stock price began a sharp decline within a few weeks (approximately 25 days) after reaching its peak down 55%,: after rising more than 6,000% since its separation from Western Digital, investors and institutional funds have locked in their gains.

Sandisk stock is on the rise thanks to analyst predictions of climbing demand.

A general downward movement affected semiconductor and memory stocks (Micron, Kioxia, SK Hynix, AMD). The Fed’s comments suggesting excessive valuations on technology assets accelerated the selling. Investors fear medium-term competition (Samsung, SK Hynix, Chinese manufacturers) and falling prices on the memory spot market despite AI demand

Sandisk the pure-play NAND flash company spun off from Western Digital in early 2025, has seen a sharp decline from its mid-to-late June 2026 peak. The 52-week high was approximately $2,354 (around June 22), with a closing high near $2,335 on June 25.

Shares were in the roughly $1,080–$1,120 range (after multi-day drops of 10%+), representing a decline of about 50–55% from the peak.

This follows an extraordinary run: the stock IPO’d/spun out near the mid-$30s–$40s in February 2025 and delivered multi-thousand-percent gains into mid-2026, driven by AI data-center demand for NAND/enterprise SSDs, tight supply, high gross margins (reports of ~78% in a recent quarter), large contracted backlogs, and sector-wide memory shortages.

Many Wall Street analysts (Evercore ISI, Citi) remain very bullish in the long term although the technical correction was severe (breaking supports below 1800) $- 1 550$ ). Theybelieve that the AI infrastructure supercycle continues to support the company’s fundamentals

Enterprise SSD & NAND Shortage: demand for enterprise-grade SSDs and non-volatile NAND flash memory has reached record highs as AI clusters shift from initial training to high-scale inference and data storage. The structural shortage of NAND memory drove pricing power, boosting gross margins to ~56% and driving quarterly revenues toward $4.4B – $4.8B .

Earnings Per Share (EPS):LTM diluted EPS currently sits around $28.76 – $29.33 , representing a dramatic turn around compared to its performance prior to its spin-off from Western Digital.

Valuation / P/E Ratio: Trading at a trailing P/E of ~39x – 48x and a Forward P/E closer to 10x – 15x based on upcoming guidance, reflecting a compressed valuation following the recent pullback. SanDisk holds a net cash position (~$700M+) with strong free cash flow generation, reducing leverage risks during volatile market cycle

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.