Why Sandisk Stock Is Sinking Today
Why Sandisk Stock Is Sinking Today
Keith Noonan, The Motley FoolWed, July 29, 2026 at 6:01 PM UTC
0
Key Points -
Sandisk stock is falling as the AI memory chip trade has continued to lose steam.
The reaction to Sk Hynix's Q2 results and concerns about Chinese competition are creating an uptick in bearish sentiment.
Sandisk stock is also falling in response to macroeconomic risks.
10 stocks we like better than Sandisk ›
&&
Sandisk(NASDAQ: SNDK) stock is getting hit with another round of big sell-offs on Wednesday. The company's share price was down 4.5% as of 1:35 p.m. ET against the backdrop of a 0.7% decline for the S&P 500 and a 0.7% decline for the Nasdaq Composite. Sandisk had been down as much as 7.9% earlier in the session.
Memory and storage stocks are seeing a substantial valuation pullback that's a key factor in broader valuation contractions for AI companies and the market at large. But despite trading down roughly 55% from its high, Sandisk stock is still up roughly 2,400% over the last year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
&&
Image source: Getty Images.
Sandisk is slipping as investors reposition on AI chip stocks
Memory and storage specialists have seen huge sales and earnings growth connected to demand stemming from artificial intelligence (AI) over the last year, and Sandisk shareholders have been massive beneficiaries of the trend. On the other hand, the market has been souring on the memory chip trade recently.
SK Hynix's stock is seeing continued bearish momentum following its recently reported second-quarter results, and the reaction to the print is having a spillover effect on Sandisk and other AI stocks. While Sk Hynix posted very strong sales and earnings growth, results on both fronts came in below the average analyst forecasts. Adding additional valuation pressures for Sk Hynix, Sandisk, and other big AI names, investors are becoming increasingly concerned about competitive pressures from rival Chinese offerings.
Macroeconomic concerns are also sending Sandisk stock lower
With no clear end to the Iran war in sight, oil prices have continued to move higher. As a result, the outlook on inflation is worsening again -- and investors are worried that it could result in higher interest rates.
Advertisement
The Federal Reserve is set to announce whether or not it will raise interest rates at 2 p.m. ET, and most investors and analysts expect that the central banking authority will opt to keep the benchmark rates at their current levels.On the other hand, the market is bracing for Fed commentary to lean hawkish and suggest the likelihood of rising rates in the future. If the Fed returns to raising rates, it could put a significant damper on bullish momentum in the stock market.
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sandisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2026.
&&
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Source: “AOL Money”
