SanDisk Stock Drops as NAND Market Share Declines
SanDisk shares fell 5.4% after data showed its NAND flash memory market share dropped to 11%, trailing Chinese competitor Yangtze Memory Technologies.
Shares of SanDisk Inc. fell 5.4% on Tuesday following a report from Counterpoint Research showing a decline in the company's NAND flash memory market share. The data indicates SanDisk's share dropped to 11% in the second quarter of 2026, reversing gains the company had made over the previous year.
This decline occurs as SanDisk faces increasing pressure from global competitors. China's Yangtze Memory Technologies Co., a state-owned enterprise, has rapidly expanded to become the world's third-largest NAND manufacturer and maintained a 14% market share, surpassing SanDisk. Other industry leaders, including Micron and SK Hynix, also saw their market shares increase by two and one percentage points, respectively.
While SanDisk has recently benefited from chronic global shortages in the NAND market, analysts warn that the company's current valuation may be misleading. Despite a 2.9x forward 2028 price-to-earnings ratio, experts suggest that cyclical stocks often appear cheapest at their peak. There are growing concerns regarding the sustainability of earnings per share consensus for fiscal 2029, with expectations for material downward revisions in the coming quarters.
