SanDisk Sinks After a Huge 2026 Rally as AI Demand Questions Grow

SanDisk, the memory-chip giant traded as SNDK, has surged more than 700% since the start of 2026, but it has recently hit sharp volatility. The stock fell about 13.6% as technology shares weakened and investors questioned whether demand for AI-driven memory chips can hold up. After reaching an intraday peak of $2,354.39 earlier in the week, the shares slid to about $1,963.60.

Analysts say the drop is the first major test of the AI-memory story since SanDisk separated from Western Digital at the beginning of 2025. They note that AI is materially changing NAND-chip demand, especially because of inference workloads. The company is already seeing that impact in its results.

In the third quarter of fiscal 2026, SanDisk’s data-center revenue jumped 233.4% to $1.47 billion. Total quarterly revenue, reported at the end of April, reached $5.95 billion, up 251% from a year earlier and far above analyst expectations. SanDisk also said it has no debt and held $3.7 billion in cash.

For fiscal fourth quarter 2026, management forecasts revenue of $7.75 billion to $8.25 billion and non-GAAP earnings per share of $30 to $33. Wall Street expects EPS of $31.81, which the article says would be up 158,950% year over year. Even after the rally, the stock trades at a forward P/E of 34.13 and a price-to-sales ratio of 17.17, both above industry averages.