SanDisk stock plunges 20% as AI selloff deepens despite strong earnings
SanDisk's stock fell 20% despite strong earnings and positive forecasts. The company projected Q2 revenue of $12.2B-$12.6B and adjusted earnings of $55-$57 per share, beating analyst estimates. RBC Capital reduced its price target to $1,400, citing sector-wide valuation declines. The firm noted NAND pricing strength but adjusted for lower multiples.
How this was made
The 30-second read
Why it matters
The earnings beat offers short‑term upside potential, yet sector‑wide valuation concerns drive negative sentiment.
Market read
Earnings release with guidance and analyst target change creates a mixed signal; price action reflects sector pressure.
What to watch
RBC's target cut reflects broader memory sector multiples, not just SanDisk's performance.
Background
SanDisk reported Q2 revenue and earnings beats but saw its stock plunge 20% amid a broader AI sell‑off.
Market effects
Memory sector valuation pressure may spread to other NAND manufacturers.
U.S. tech stocks could see modest pullback as AI sentiment wanes.
Limited to investors tracking AI‑related hardware exposure.
Counterpoint
Despite the price drop, the earnings beat and strong NAND pricing could support a rebound if AI demand stabilizes.
Key entities
- companySanDisk
Memory storage brand reporting earnings and guidance.
- analystRBC Capital
Lowered price target and maintained Sector Perform rating.
