Sandisk Shares Sink 46% as AI Memory Price Fears Eclipse 372% Revenue Growth

3 articles · Updated · The Motley Fool · Aug 13

Sandisk has dropped 46% since its late-June peak, reversing part of a rally that had lifted the stock 6,400% from its February 2025 spinoff from Western Digital.
Market concern centers on NAND pricing: investors fear AI memory shortages may ease if new technologies or cheaper approaches reduce demand for current storage-heavy large language model systems.
Fiscal fourth-quarter revenue still jumped 372% year over year, while full-year revenue rose 175%, driven by a 437% surge in data-center sales and 195% growth in edge devices.
At about 17 times trailing 12-month earnings, the stock now trades near its cheapest valuation since turning profitable, though the memory business remains highly cyclical and volatile.
Sandisk argues AI is a long-term, memory-intensive trend and says its consumer business adds stability, but the selloff shows investors are questioning how durable today's NAND boom will be.