SanDisk Shares Tumble Over 8% as Analyst Warns of Memory Market Peak

Shares of SanDisk Corporation (SNDK) plunged on Friday, closing down 8.6% as a wave of selling pressure hit the global memory and storage sector. The decline was prompted by analyst concerns that the recent AI-fueled boom in the memory chip industry may be approaching its peak.

Analyst Warnings Weigh on Sentiment

The selloff gained momentum after a Morgan Stanley report, released on July 21, warned that the memory industry is nearing an "inflection point." The report, authored by analyst Shawn Kim, argued that contract prices for memory chips are expected to peak in the fourth quarter of 2026 and that the momentum for earnings upgrades is already showing signs of fatigue.

Adding to the negative sentiment, Susquehanna analyst Mehdi Hosseini trimmed his price target on SanDisk to $3,050 from $3,250. The firm cited the discovery of errors in its financial model that had previously overstated revenue and earnings estimates. Despite the revision, Hosseini maintained a Positive rating on the stock, noting a constructive long-term outlook for AI-driven flash storage demand.

Broad-Based Sector Decline

The downturn was not isolated to SanDisk, indicating a broader market reaction to the analyst commentary. Other major players in the memory and data storage market also fell, including:

Ad

• SK Hynix
• Micron Technology (MU)
• Western Digital (WDC)
• Seagate Technology (STX)

This concentrated weakness in the tech sector stood in contrast to the broader market, where the S&P 500 and Dow Jones Industrial Average were nearly flat. The tech-heavy NASDAQ Composite saw a more modest decline of 0.6%, underscoring the specific pressure on memory chip stocks.

What's Next for SanDisk

Investors are now looking ahead to SanDisk's fiscal fourth-quarter 2026 earnings report, scheduled for August 5. The day's sharp decline reflects a market recalibrating expectations ahead of this critical catalyst. Options traders are currently pricing in a potential post-earnings move of roughly 25% in either direction, signaling expectations for significant volatility.