Sandisk Shares Fall 8.5% as Memory Stocks Extend Losses Amid Nvidia Turmoil
Key Facts
Sandisk shares fell 8.5% in Thursday, November 12, trading, alongside declines in memory and storage stocks, according to Reuters coverage published via Euronext. Western Digital shares fell 5.2%, while Micron Technology dropped 5.8% in the same session. The moves came as part of broader pressure on AI stocks, with Nvidia falling 14% and the Nasdaq Composite declining 1.5%, according to the Associated Press. Reuters linked the pressure to financing and regulatory concerns facing the sector, amid turmoil in Nvidia’s leadership. The concurrent losses in storage and memory companies and declines in AI stocks placed those companies within the sell-off, without by themselves establishing a direct causal link between developments at Nvidia and Sandisk shares.
The moves extended to companies tied to cloud computing infrastructure that serves AI applications. CoreWeave shares fell 13.6%, after surging more than 27% in the previous session, when the company’s results sparked a relief rally in AI stocks, according to Reuters. Nebius shares also fell 20% after the company forecast 2026 revenue at the low end of its previous guidance. The two companies’ share moves show a clear contrast between the earlier rally and Thursday’s sell-off, alongside Nebius’ lower revenue outlook. By contrast, AMD and Broadcom shares rose 1.7% and 0.8%, respectively, as investors saw Nvidia’s turmoil potentially creating an opening for its competitors, Reuters reported.
Sector stocks are also facing pressure tied to concerns about financing the expansion of AI infrastructure. Reuters said regulatory concerns increased after Democrats won the midterm elections, including in states opposed to building new data centers, raising fears that tighter rules could slow construction of that infrastructure. Nvidia has featured in the debate because of its role in financing new cloud computing companies, according to comments Reuters quoted from portfolio manager John Bai Liu. Liu said, "Most new cloud data center companies have received support from Nvidia in this world of circular financing." The financing links chip companies and infrastructure operators, as markets watch companies’ ability to continue expanding amid regulatory concerns.
The sell-off came as Nvidia underwent a change in its executive leadership. The Associated Press said co-CEO and founder Jensen Huang resigned on Thursday and the company appointed CFO Colette Kress as interim CEO, while the board began searching for a permanent successor. The agency reported that Nvidia shares had fallen 27% from their record level set the previous month through Wednesday’s close, after rising 1,722% over four years to reach that level. The Associated Press quoted eMarketer senior analyst Asa Hiken as saying that the AI industry’s reliance on Nvidia chips makes Huang’s departure a source of uncertainty extending beyond the company itself. Nvidia also said it had "no reason to believe" that national security or company secrets had been compromised, and that its investigation would examine the available information.
Nvidia’s board had announced an independent investigation after reports said Huang had been targeted in an attempt by a foreign intelligence service, assigning a committee of independent directors to oversee the investigation and retain outside legal counsel. Reuters reported that Nvidia shares fell 10.3% in premarket trading, putting the company’s market capitalization at risk of falling below $4 trillion for the first time since July 2025. The agency also said the company had lost about $300 billion in market value since the board announced the investigation on Sunday. Caution spread beyond the United States: Japan and South Korea’s markets closed down about 0.7%, while European technology stocks fell about 1%, Reuters reported. On valuation, Nvidia traded at about 12 times estimated earnings for the next twelve months, its lowest multiple since November 2012, according to data compiled by LSEG and cited by Reuters.
Markets are watching a near-term event on November 17, when Nvidia will hold a conference call to discuss results for the third quarter of its fiscal 2027. The quarter ended on October 25, according to the company’s investor relations announcement. The call follows Kress’s move into the interim leadership role and comes as markets track developments in the investigation and the search for a permanent CEO. The company is expected to present results for the period ended in October at the event, according to its published schedule. The event will provide an update on the company’s financial performance amid the sell-off across sector stocks.