2 hours ago
4
TLDR
- SanDisk stock fell 2.8% in early premarket trading, extending Monday’s 5.97% decline.
- Broadcom’s warning about AI financing added pressure to semiconductor shares.
- China’s CXMT raised fresh concerns about competition across the memory industry.
- Rosenblatt maintained a bullish outlook with a $2,400 SanDisk price target.
- SanDisk faces potential support at 1,350–1,400 ahead of October 29 earnings.
SanDisk (SNDK) stock extended its decline in early trading on October 13 as semiconductor shares weakened across global markets. The Nasdaq-listed storage company traded near $1,446.09 before the opening bell, down 2.8%. Shares closed Monday at $1,487.33 after falling 5.97%, leaving them roughly 39% below their $2,354.39 annual high.
SanDisk Stock Falls Amid Chip Sector Selloff
Asian semiconductor shares dropped Tuesday after American chipmakers suffered losses the previous session. Samsung Electronics and SK Hynix faced selling pressure as investors questioned the durability of memory prices.
Broadcom CEO Hock Tan added to the concerns Monday. He warned that limited investment capital could constrain AI expansion and compared some speculative spending to casino gambling. His remarks came amid rising scrutiny of data center financing.
The broader retreat also reached Nvidia stock. Its recent reversal followed questions about data center spending and competition from custom chips, adding to caution across technology shares. Chipmakers now face closer attention before upcoming earnings reports.
NAND Margins Face Questions Before Earnings
SanDisk reported $8.97 billion in revenue for its fiscal fourth quarter. Its non-GAAP gross margin reached 84.6%, driven partly by stronger memory pricing and growing data center demand. Management forecast revenue between $10.3 billion and $10.8 billion for the next quarter.
Chinese memory manufacturers, including CXMT, are making advances that have raised competition concerns. Although CXMT focuses on DRAM, investors are watching supply growth throughout the memory industry. Samsung’s preliminary quarterly results also fell short of analyst estimates despite record operating profit.
Meanwhile, Microsoft’s AI chip strategy adds another dimension to the spending debate. The company is developing its own processors to improve efficiency, while chip suppliers face questions about future infrastructure budgets.
Analyst Targets Contrast With Weak Price Action
Rosenblatt analyst Kevin Cassidy assigned SanDisk a Buy rating and a $2,400 price target. He cited growing demand for NAND storage and customer agreements that could cover 65% of fiscal 2028 output. Those contracts involve eight major customers.
Mizuho raised its target to $2,050 on October 6. Meanwhile, a report on AI stock concentration describes investors’ wider exposure to the technology trade as semiconductor valuations face renewed scrutiny.
SanDisk stock faces possible support between $1,350 and $1,400, with $1,200 another level if selling continues. Resistance stands near $1,490 to $1,500. Its October 29 earnings report will bring fresh information about NAND pricing, demand, and margins.
The post SanDisk (SNDK) Stock Falls Despite Wall Street’s Bullish Targets appeared first on Blockonomi.
English (US) ·