SanDisk Corporation shares opened sharply lower on Monday, dropping 6.7% to $557.88 in early trading. The decline extended a period of significant volatility for the flash memory maker, with shares falling $40.07 from Friday's closing price of $597.95. The stock traded between $553.32 and $605.92 during the initial session.
Broader Sector Pressure
The sell-off pressured other memory and storage companies. Micron Technology declined approximately 5%, while Seagate Technology and Western Digital also moved lower. The VanEck Semiconductor ETF (SMH) slipped 0.4%, reflecting broader weakness in the chip sector.
Recent Performance and Outlook
SanDisk's stock has experienced dramatic swings recently, reaching $725 last week before falling nearly 16% the following day. The company reported strong fiscal second-quarter results in late January, with revenue of $3.03 billion and non-GAAP earnings per share of $6.20. Management raised its guidance, projecting fiscal third-quarter revenue between $4.4 billion and $4.8 billion, with non-GAAP EPS expected in the range of $12 to $14.
CEO David Goeckeler cited a "structural reset to align supply with attractive, sustained demand" as positioning the company for disciplined growth. SanDisk, which became a standalone public company in February 2025 after separating from Western Digital, has benefited from strong demand from AI data centers and enterprise storage.
Strategic Developments and Market Focus
In a significant strategic move, SanDisk and Japan's Kioxia recently extended their Yokkaichi joint venture agreement to December 2034, five years beyond the original timeline. Under the new terms, SanDisk will pay Kioxia $1.165 billion in installments between 2026 and 2029 for manufacturing services and supply security. Goeckeler described the partnership as "a thriving collaboration across NAND R&D and manufacturing."
Market attention now turns to upcoming U.S. economic data, including the consumer price index and employment figures, which could influence Federal Reserve interest rate policy. These releases are particularly relevant for growth-oriented technology stocks like SanDisk. The memory sector remains highly cyclical, with prices and supply dynamics subject to rapid shifts based on capacity changes and demand fluctuations.
