Sandisk shares retreat nearly half from June highs amid profit-taking, but strong data center demand supports long-term outlook.
Sandisk (NASDAQ: SNDK) has fallen 48% from its late-June all-time high after surging over 5,400% in the past year. The decline follows a pullback from record levels, sparking debate over whether the stock’s rally has stalled or if this is a temporary dip.
The company, a leading NAND memory producer, benefits from a supply shortage driven by booming data center construction. Demand for solid-state drives (SSDs) in AI and cloud infrastructure has outpaced production, pushing prices higher and boosting Sandisk’s revenue and profits. Analysts expect the trend to persist as capacity expansion takes years.
While some investors are locking in gains, the long-term outlook remains positive due to sustained demand for memory chips. The stock’s recent weakness may present a buying opportunity if the cycle continues.