SanDisk shares peaked near $2,354 after skyrocketing 6,000% from $36 following its spin-off from Western Digital in early 2025. By mid-June 2026, the stock’s relative strength index hit an all-time high above 99, warning investors that the rally was overheated.
Since June 15, the share price has plunged 39.36%, sliding down to $1,278.23 by July 28. A $1,000 investment just over a month ago would now be worth only about $606, marking one of the harshest reversals among major tech stocks this summer.
What triggered the sharp decline?
The correction follows a typical pattern after an extreme rally, but broader market concerns compound the drop. SanDisk’s close ties to the artificial intelligence sector have made it vulnerable amid growing skepticism around the sustainability of AI-driven growth. Rival tech giants like Nvidia and Google have also seen their stocks falter recently due to worries about increased AI spending and market jitters.
SanDisk’s role as a key memory supplier for AI infrastructure means its fortunes are closely linked to this volatile segment. Even if confidence in AI investment rebounds, geopolitical factors like China’s push for domestic tech alternatives could keep pressure on the company’s outlook.
This material is for informational purposes only and does not constitute financial advice.
