Sandisk Shares Drop 7% Amid AI Valuation Concerns Linked to Apple-China Memory Uncertainty

The SEC has subpoenaed Bank of America, Citi, Goldman Sachs, and JPMorgan Chase as part of an investigation into the near-collapse of AI-focused hedge fund Situational Awareness, which saw a 67% portfolio wipeout in July. The inquiry focuses on the fund's trading timing, leverage, and communications with lenders. Situational Awareness, founded in 2024, had managed over $30 billion and held significant stakes in SanDisk and Micron, which experienced sharp declines in July. The fund's liquidation

Sandisk (SNDK) stock fell 37% from its peak, but analysts remain bullish. Q4 revenue was $8.97B, up 372% YoY, driven by AI demand and tight NAND supply. Data centers and edge revenue grew significantly. Long-term customer agreements improve revenue visibility. SNDK trades at 12x forward earnings, with analysts expecting 201% EPS growth in FY2027.

Sandisk (SNDK) shares fell 7.5% after reports that Apple may source memory chips from Chinese suppliers YMTC and CXMT. YMTC competes directly with Sandisk in NAND memory chips, while CXMT focuses on DRAM. Sandisk's high-bandwidth flash memory could compete with CXMT's planned high-bandwidth memory. Apple's potential use of these chips is currently limited to products sold in China. Analysts note that neither YMTC nor CXMT currently pose a serious threat to Sandisk due to quality and production c

Memory stocks fell Monday after reports that Apple may source chips from Chinese suppliers. SanDisk (SNDK) dropped 9%, Micron (MU) 7%, and Western Digital (WDC) 7%. The Roundhill Memory ETF (DRAM) also fell 7%. Analysts debate the impact, with some calling the selloff an overreaction.

SanDisk (SNDK) stock fell 11.2% after reports suggested the Trump administration may allow Apple to source memory chips from Chinese suppliers, posing a competitive threat. Samsung's underwhelming shareholder return plan also impacted the memory sector. Analysts differ on the severity of the reaction, with some calling it an overreaction. The stock is near its 52-week low of $46.01, down from a high of $2,354.39.

Alibaba's U.S. shares fell 2% after announcing a $10.2B share issuance for AI projects. Chipmakers like Marvell, AMD, and Intel declined. Memory stocks Sandisk, Western Digital, Seagate, and Micron also dropped. Nucor and Steel Dynamics rose over 3% after U.S.-Canada trade talks collapsed. Robinhood and Coinbase fell 1% and 2% respectively as Bitcoin prices stalled. Jersey Mike's Subs gained 0.5% on buy ratings from analysts.