Sandisk Stock Plunges 14% as AI Memory Boom Concerns Mount

Key Facts

In a move reflecting a shift in risk appetite toward the tech sector, Sandisk shares experienced a sharp 14% decline in a single day on July 2. This plunge resulted from a broad sell-off across the memory chip industry, as SNDK was swept up in a global rout of AI hardware stocks. According to reports, the decline was not driven by company-specific news but rather by mounting market fears that the supply of AI computing hardware is finally catching up with global demand.

This downturn comes as major chipmakers face similar headwinds; Micron Technology recently issued cautious guidance on profit margins despite revenue growth, sparking investor concerns about the sustainability of the AI infrastructure spending boom. Per market data, this price correction is re-evaluating the market capitalization of semiconductor firms following record gains in the first half of the year, as the market awaits upcoming earnings reports to confirm if the momentum remains intact.

At the close of July 6, 2026, SNDK stood at $1,744.43, having touched a session low of $1,713.20 according to market data. Traders are now monitoring support levels near the recent session low to gauge the potential for a rebound. With no immediate high-impact catalysts for the tech sector in the upcoming economic calendar, focus remains on macroeconomic signals that could influence the financing costs of large-scale AI projects.