Sandisk’s fiscal Q1 revenue outlook fell short of analyst expectations, triggering a sharp sell-off despite strong Q4 results.
Sandisk (NASDAQ: SNDK) shares plunged nearly 47% from their June peak after the company’s fiscal Q1 revenue guidance disappointed investors. The memory chip maker reported robust fiscal Q4 earnings, with revenue surging and gross margins expanding, but cautious near-term projections overshadowed the gains.
Analysts had anticipated stronger Q1 guidance, reflecting continued optimism about NAND flash memory demand, particularly from AI-driven data centers. Sandisk has benefited from tight supply and rising prices, but its decision to prioritize long-term stability over short-term gains raised concerns about the cyclical flash market’s trajectory.
The stock’s decline underscores investor sensitivity to signs of a potential market shift, despite Sandisk’s strong fundamentals in the current supply-constrained environment.