SanDisk stock rebounds after Kioxia flash‑price warning triggers sharp sell‑off
SanDisk shares fell 14% in a week after partner Kioxia warned that flash‑price gains were fading, prompting a broader memory‑chip sell‑off. The company reported a record fiscal first‑quarter revenue of roughly $11 billion and an 85% gross margin, and announced an 8‑for‑1 stock split. On Tuesday the stock rallied 6‑7% as investors returned to the beaten‑down shares, helped by long‑term contracts and a supportive chip‑sector backdrop.
Why it matters
The rebound shows that the sell‑off may have been over‑done, offering a potential entry point for traders; the split and strong Q1 results also set the stage for future price action. Wedbush kept its Outperform rating and a $2,000 price target despite the volatility.
Key facts
- 1SanDisk shares fell 14% over the week through Monday’s close. finance.yahoo.com
- 2Fiscal first‑quarter revenue was $11.03 billion. 247wallst.com
- 3Fiscal first‑quarter gross margin was 85%. finance.yahoo.com
- 4SanDisk announced an 8‑for‑1 stock split effective November 20. finance.yahoo.com
- 5The stock rose 7% in early trading, trading at $1,149.60. 247wallst.com
- 6Data‑center sales reached $4.8 billion, up 61% sequentially. investing.com
Open questions
- Stock rally is described as 6.5% in material 3 and 7% in material 2.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.