Sandisk Corporation (SNDK) drops 7.7% as memory stocks slide
Sandisk Corporation (SNDK) drops sharply as a sector-wide memory selloff hits AI-linked chip names. The move follows a weak outlook from SK Hynix, even as SanDisk’s Meta storage deal, strong earnings streak, and cloud growth keep the long-term story intact.
Sandisk Corporation (SNDK) drops 7.7% as a broad memory-stock selloff overwhelms recent AI-driven momentum. The decline was triggered by weak guidance from SK Hynix, which pressured the entire NAND and DRAM group even though SanDisk’s operating trends remain strong. For investors, this looks like a sentiment reset rather than a broken business case, but valuation remains elevated.
Sandisk Corporation (SNDK) drops 7.7% in Monday trading, falling to $1,768.38 at 11:05 ET, as the memory trade reverses sharply across the sector. The move matters because it hits a stock that had been one of 2026’s strongest AI-linked winners, and the selling is landing after a burst of bullish analyst action and a high-profile Meta demand narrative.
Key Takeaways
SNDK is down 7.7% at $1,768.38, and the most direct driver is a broad memory-stock selloff tied to SK Hynix’s weak outlook.
A July 13 market report said Micron, Sandisk, and Western Digital each fell about 6% after SK Hynix posted a profit estimate 8% below consensus.
The decline comes just days after Reuters reported Meta had multi-year flash storage supply agreements with SanDisk as part of a $145B AI infrastructure push.
Fundamentals still show strength: SNDK has beaten EPS estimates in six straight reported quarters, including $23.41 vs $14.66 on April 30.
For investors, today’s drop looks more like a sentiment reset in memory stocks than a collapse in SanDisk’s operating story.
What’s Behind Sandisk Corporation’s Selloff Today
The clearest reason for today’s drop is sector contagion in memory stocks. A July 13 market report said SK Hynix plunged 15% after issuing a profit estimate that came in 8% below consensus. In response, Micron (MU), Sandisk (SNDK), and Western Digital (WDC) each fell about 6%, while the Roundhill Memory ETF (DRAM) dropped 9%.
That matters because SNDK has been trading as a pure-play memory and storage beneficiary of the AI buildout. When one of the industry’s largest players disappoints, traders often hit the whole group first and sort through company-by-company differences later. It is a blunt instrument, but markets use blunt instruments all the time.
Importantly, this is not happening in a vacuum. Another July 13 report described the AI-driven memory trade as slipping into bear-market territory after several leading names and ETFs fell more than 20% from recent highs. That backdrop helps explain why a stock with strong recent momentum can still drop hard in a single session.
Why the Meta AI Storage Deal Still Matters for SNDK
The irony is that SNDK is selling off only days after one of its strongest recent catalysts. On July 9, Reuters reported that Meta Platforms (META) had locked in multi-year supply agreements for flash storage from SanDisk as part of an aggressive AI infrastructure expansion. The same report said Meta plans to spend as much as $145B on AI infrastructure this year and target 7 gigawatts of computing capacity in 2026 and 14 gigawatts in 2027.
For SanDisk, that is not vague AI excitement. It is a named hyperscaler, a named product category, and a demand signal tied directly to the company’s NAND flash business. SanDisk sells storage products built on NAND flash technology, including SSDs and embedded storage used in data-heavy environments. AI systems need GPUs, but they also need fast storage for training data, checkpoints, logs, and inference workloads.
That earlier catalyst had real market impact. Reports on July 9 said SNDK jumped 6.82% in early trading, with another update pointing to a 3.3% gain later in the session. In other words, today’s decline is hitting a stock that had already run hard on a concrete AI customer narrative. Some of the selling looks like a reversal of crowded positioning rather than a direct rebuttal of the Meta story.
How Sandisk Corporation’s Financials and Valuation Look After the Drop
SanDisk’s operating backdrop still looks strong on the facts available. The company has beaten EPS estimates in six straight reported quarters. Most recently, it posted EPS of $23.41 on April 30, far above the $14.66 estimate, a 59.7% surprise. Before that, it earned $6.20 versus a $3.54 estimate on January 29, a 75.1% surprise.
The business mix also shows why investors had become so bullish. In fiscal 2025, SanDisk’s cloud revenue increased 195%, or $635M, versus 2024. Exabytes sold rose 153%, and ASP per gigabyte increased 17%. Those are not cosmetic gains. They point to stronger enterprise SSD demand and better pricing, which is exactly where AI infrastructure spending can have the most impact.
Valuation, however, helps explain the violence of the move. SNDK trades at a P/E of 65.3675 with EPS of 29.31 and a market cap of $261.88B. The stock also remains well above its 52-week low of $40.10, even after falling 17.97% below its 52-week high of $2,354.39 as of July 10. When a stock climbs that far that fast, even good stories can get punished if the group mood changes.
Analyst sentiment has stayed supportive. Evercore ISI raised its price target to $3,100 on July 13. Earlier, Bernstein lifted its target to $3,000 on June 29, and Cantor Fitzgerald raised its target to $2,900 on June 8. The broader analyst consensus stands at Buy, with 13 buy ratings and 2 hold ratings. That does not stop a selloff, but it shows Wall Street has not abandoned the name.
Today’s action looks like a reset in risk appetite around memory stocks, not a fresh company-specific breakdown at SanDisk. The stock is caught between two strong forces: one is the bullish AI storage demand case tied to Meta, and the other is a sector-wide rerating after SK Hynix shook confidence in near-term memory pricing and profit expectations.
That tension matters because SNDK is no longer a sleepy storage brand. It has become a high-beta AI infrastructure trade. Stocks in that category can rise on a single customer headline and drop just as fast when a peer weakens. The company’s strong EPS streak, cloud growth, and favorable analyst targets give the bull case substance. Still, the 65.3675 P/E leaves little room for sector nerves.
The practical takeaway is simple. Investors weighing SNDK need to separate the company’s business momentum from the memory group’s mood swing. Right now, the facts show both are real. The operating story remains intact, but the stock is trading like a momentum vehicle first and a fundamental story second.
Sandisk Corporation (SNDK) drops sharply today because the memory sector turned lower after SK Hynix delivered a weak outlook, dragging peers down with it. Yet the bigger picture has not flipped: SanDisk still has a strong AI-storage narrative, a clean streak of EPS beats, and fast cloud growth, which makes this selloff more about sentiment and valuation pressure than a broken business case.
SNDK is down because the memory sector sold off after SK Hynix issued a weaker outlook, dragging peers like SanDisk lower. The move appears to be sector-driven rather than caused by a new company-specific problem.
+Should I buy SNDK stock now?
The article suggests the long-term business case remains intact, but the stock is still vulnerable to sharp swings because of its high valuation and momentum-driven trading. Investors may want to wait for the sector to stabilize before adding.
+Did the Meta storage deal stop SNDK from falling?
No. The Meta deal remains a positive catalyst, but today's selling was driven by a broader memory-stock reset that outweighed the bullish news. That makes the drop more about market sentiment than a change in SanDisk's demand outlook.
+Is this SNDK drop a sign the AI story is over?
No, the AI storage story is still intact based on SanDisk's cloud growth, earnings beats, and Meta-linked demand. What changed today was investor appetite for memory stocks, not the underlying AI demand narrative.
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