Sandisk Stock Plunged 14% in a Day. Is the AI Memory Boom Cracking?
Yahoo Finance ·
On July 2, Sandisk ( SNDK 0.03% ) stock fell about 14% in a single session, closing at $1,745. It wasn't alone. The sell-off tore through the entire memory complex -- Micron dropped, and shares of Samsung and SK Hynix fell sharply in Seoul. For a stock that had risen more than 700% this year, a big one-day drop like that naturally raises the question: Is the artificial intelligence (AI) memory boom finally cracking? Interestingly, the trigger for the stock's sell-off came from outside the memory industry. A day earlier, reports that Meta Platforms ( META +3.12% ) plans to sell its spare AI computing capacity to outside customers stoked fears that the AI compute shortage is easing -- and that was enough to rattle anyone betting on AI hardware. Memory, the hottest corner of that trade after a blistering rally, took the brunt. It helps to remember how far these stocks had run. Sandisk had been one of 2026's biggest winners before the drop, and its rivals had also soared. After a move like that, it doesn't take much bad news to spark a violent pullback -- profit-taking feeds on itself. What it didn't take was any change at Sandisk. Nothing about the company's own business shifted on July 2. This was a sentiment reset after a red-hot run, not a sign that demand for its chips had softened.
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