SanDisk Shares Fall 11% Despite Record AI-Driven Earnings
SanDisk Corporation shares tumbled after competitor Kioxia warned of slowing memory price growth, despite SanDisk reporting record first-quarter revenue of $11 billion.
Shares of SanDisk Corporation fell as much as 11% on October 30, 2026, following warnings from competitor Kioxia that the surge in NAND flash memory prices may be ending. Kioxia reported an expected operating profit of ¥2 trillion, missing analyst estimates, and noted that average selling prices for NAND flash memory rose in the mid-20% range—a sharp deceleration from the 70% increase seen in the previous quarter.
The stock decline occurred despite SanDisk reporting first-quarter fiscal 2027 results that exceeded Wall Street expectations. The company reported revenue of $11 billion, a 378% year-over-year increase, and adjusted earnings per share of $49.51. This growth was fueled by AI-critical memory chips, with data center revenue rising 1,682% year-over-year to $4.8 billion and edge computing revenue jumping 320% to $5.8 billion. Management attributed 60% of sequential revenue growth to higher shipment volumes and 40% to pricing power.
To increase accessibility for investors and employees, SanDisk announced an 8-for-1 stock split on October 29, with split-adjusted trading scheduled to begin on November 20. The company raised its second-quarter revenue outlook to between $12.2 billion and $12.6 billion. However, investors remained concerned about the long-term durability of AI demand and potential price ceilings for memory chips. By the time of the announcement, the stock closed at approximately $1,330, roughly 43% below its record close of $2,335 set on June 25.
