Sandisk Shares Drop 39% Despite Record AI Storage Demand

Shares of Sandisk declined approximately 39% between June 25 and July 20, 2026, falling from a closing high of $2,335 to about $1,420 per share. The sell-off stems from investor concerns over unsustainable stock prices and high valuations across the chipmaker and memory sectors, leading shareholders to realize profits.

This market decline occurs despite strong financial performance fueled by extreme demand for AI accelerator memory storage drives. In its fiscal third quarter, the company reported a 251% year-over-year revenue increase and earnings of $23.03 per share. Sandisk has already sold out of its AI storage drives for 2026 and maintains a backlog of at least $42 billion.

Looking forward, the company projects fourth-quarter 2026 revenue between $7.75 billion and $8.25 billion. Sandisk had previously operated as part of Western Digital Inc. before being spun off prior to its February 2025 initial public offering.