Investors react to reports Apple may bypass SanDisk and Micron for cheaper Chinese memory chip suppliers.
SanDisk (NASDAQ: SNDK) shares declined 4% by midday Monday, reversing last week’s gains. The drop follows reports Apple is seeking U.S. approval to source memory chips from China’s CXMT instead of SanDisk and Micron (NASDAQ: MU), citing cost and supply concerns.
Jefferies had raised SanDisk’s price target to $3,000 on Friday, but sentiment shifted after news of Apple’s potential move. While CXMT primarily supplies DRAM, analysts warn broader adoption of Chinese suppliers could pressure NAND flash producers like SanDisk.
Mizuho’s Jordan Klein suggested the threat may be overstated, noting buyers continue locking in supply from established suppliers despite price increases.