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SanDisk Shares Pull Back After Double‑Digit Drop as Earnings Loom

A sharp one‑day selloff has trimmed recent gains, setting the August 5 earnings report as the key test of whether the rally holds.

Overview

  • The stock, which fell about 12.6% on Tuesday, remains up roughly 600% year‑to‑date despite the recent pullback.
  • SanDisk has guided fiscal fourth‑quarter revenue to $7.75 billion–$8.25 billion and will report results after market close on August 5.
  • Analysts attribute the rally to surging AI and data‑center demand, sold‑out 2026 production and multiyear customer contracts that have tightened NAND supply and supported prices.
  • The shares trade at an elevated multiple near 60 times trailing earnings, a valuation that increases sensitivity to profit‑taking, broad market weakness and geopolitical headlines such as renewed U.S.‑Iran tensions.
  • Market participants say the August 5 report and any forward guidance will determine if tight supply and contract backlog justify current prices or trigger further volatility.