SanDisk Shares Drop 33% Following Chinese DRAM Progress
SanDisk shares fell over 33% in one month after reports of DRAM advancements by China's ChangXin Memory Technologies triggered a broader memory sector selloff.
Shares of SanDisk Inc. fell 33.18% over the past month to $1,260.93, following reports that China's ChangXin Memory Technologies made technical progress on next-generation DRAM and server-grade DDR5 chips. The news triggered a wider decline across memory stocks, including Western Digital, Micron Technology, and Seagate Technology.
Despite the slide, the company has seen record business performance and remains up 431.19% year to date. SanDisk specializes in NAND flash storage rather than DRAM and maintains a Japanese supply chain that provides insulation from DRAM-specific risks. To protect earnings against flash price volatility, the company secured NBM agreements with price floors and ceilings, including $59.8 billion in future revenue.
Additional pressure on the stock stemmed from profit-taking, rising Treasury yields, and investor concerns regarding debt-funded AI infrastructure spending. Analysts remain generally bullish, with a consensus price target of $2,173 and a high target of $3,600 from Melius Research based on High-Bandwidth Flash demand. Investors are now focused on the company's October 29 earnings report, where gross margin performance is expected to dictate future valuation.
