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Sandisk (SNDK) has been the most remarkable stock of the year. Shares climbed from a 52-week low of $40.10 to a high of $2,354.39 in late June, the sort of rise almost no established company ever sees. What caused this extraordinary surge was the supply constraints of memory chips. AI data centers need huge amounts of storage, and when the supply of memory chips could not keep up, prices soared. Sandisk sells those chips, so its revenue and profit exploded. Last quarter, sales jumped 251% from a year earlier, and margins nearly doubled.
That run has now reversed sharply. SNDK stock has fallen more than 48% from its 52-week high. Part of that is simple profit-taking. After a rise that steep, investors don’t need much of a reason to sell.
