SanDisk ETFs Plunge Despite 437% Data Center Revenue Surge

Key Facts

At a time when markets are questioning the sustainability of the AI boom, SanDisk's latest results revealed a sharp disconnect between operational growth and investor sentiment. The company reported a massive 437% year-over-year surge in data center revenue, yet its stock faced a significant premarket selloff. This decline was primarily driven by cautious forward guidance, which triggered a plunge of over 20% in leveraged 2x ETFs tracking the stock.

The market reaction underscores heightened sensitivity toward future margins in the semiconductor sector, despite the company delivering a substantial earnings beat. Per market data, SNDK closed at $1350.5 on August 5, 2026, having traded within a daily range of $1345 to $1441.76. Investors are increasingly focused on whether memory manufacturers can sustain high growth as AI spending shifts from model training to inference phases.

Looking ahead, traders are monitoring technical support levels near the recent low of $1345 (as of the August 5, 2026 close). With no major technology-specific catalysts in the upcoming economic calendar for the next seven days, market attention will remain on management's outlook for the PC and smartphone segments, where the company anticipates mid-teens shipment declines for the current year.