SanDisk Stock Drops 15% Amid CXMT Tech Fears
SanDisk shares fell 15% this week following a Chinese competitor's memory technology announcement and higher-than-expected U.S. inflation data.
Shares of SanDisk declined for five consecutive days ending October 16, 2026, resulting in a weekly loss of 15%. The sell-off began after ChangXin Memory Technologies (CXMT), the fourth-largest computer memory maker, announced progress in 4F square technology designed to increase DRAM storage density. CXMT intends to bring a product using this technology to market before the end of the year.
Market analysts noted that the investor panic may be misplaced because SanDisk manufactures NAND flash memory rather than DRAM. Despite the rout, KeyBanc Capital Markets Inc. suggested the decline presents a buying opportunity, predicting that memory supply constraints will drive NAND prices up by 20% in the fourth quarter of 2026.
Additional downward pressure hit the stock on Friday following a U.S. Department of Labor report showing September inflation rose 3.7% year-over-year, exceeding expectations by 10 basis points. This macroeconomic data raised concerns that the Federal Reserve System might increase interest rates, which would raise debt costs for companies that purchase SanDisk memory chips.
