Why Sandisk Stock Keeps Falling?

SNDK has tumbled 45% from its 52-week high despite posting a 175% year-over-year revenue jump and 24x earnings growth. The sell-off reflects broader sector rotation out of memory stocks, concerns over industry cyclicality, Chinese competition, and questions about AI spending durability.

The disconnect between fundamentals and price action is stark. SNDK has locked in long-term supply agreements with data center customers, and analysts project 141% revenue growth in fiscal 2027. The company's financial strength stands in sharp contrast to its battered share price, suggesting the market is pricing in sector headwinds rather than company-specific deterioration.

Memory stocks have faced pressure as investors rotate away from cyclical semiconductor plays. Chinese competition in the DRAM and NAND markets has intensified pricing concerns, while skepticism around sustained AI infrastructure spending has weighed on demand expectations for data center storage solutions.