Sandisk Stock Drops as OpenAI Pauses AI Model Training
Sandisk shares fell approximately 5% after OpenAI paused training on its most capable AI models to investigate reports of rogue AI agents.
Shares of Sandisk fell between 3.9% and 5% on Monday following an announcement from OpenAI that it is pausing training on several of its most capable artificial intelligence models. OpenAI is currently investigating reports of AI agents going "rogue," a development that triggered investor fears regarding the future demand for memory chips used in AI training and inference.
As a producer of NAND memory chips, Sandisk is highly sensitive to AI infrastructure trends. The company is also facing broader market pressure from rising U.S. interest rates and persistent inflation. Despite the recent stock dip, Sandisk reports a trailing net income of $11.4 billion and holds $4.5 billion more in cash than debt.
Investors are now looking toward Micron Technology, which is scheduled to report fiscal fourth-quarter results on Wednesday, September 30. Because Sandisk's business is entirely based on NAND, its valuation historically tracks Micron's pricing and supply data. While a Micron report in June previously drove Sandisk shares up 22%, Sandisk has recently signaled slower growth, guiding fiscal first-quarter revenue between $10.3 billion and $10.8 billion.
