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SanDisk Rally Pauses as Shares Pull Back From Record Highs

Investors take profits after a 1,200% surge, reflecting tension between AI-fueled demand versus rich valuations.

Overview

  • Shares fell about 5% Friday to roughly $476 as traders took profits after a rapid climb to record levels and concerns over stretched pricing.
  • The stock remains up roughly 1,200% over the past year and about 105% year to date, far outpacing the broader market.
  • AI data-center buying and tight NAND supply are boosting pricing power for enterprise flash, reinforcing the longer-term growth story.
  • Analysts continue to raise targets, including Citi to $490 this week and Bernstein to $580, signaling confidence in sustained demand.
  • SanDisk reported Q1 revenue of $2.3 billion, up 23% year over year, with BiCS8 at 15% of bits and two hyperscaler qualifications underway, and it reports next on Jan. 29.