SanDisk (SNDK) Stock Plunges 25% in Four Days — Analysts Remain Bullish Despite Selloff

Key Takeaways

Table of Contents

SNDK shares have declined 24.8% over four trading sessions through Thursday, marking the steepest weekly drop since March 2025
Shares now sit 39% beneath their June peak, with no negative earnings guidance or company warnings issued
Analyst consensus stands at Buy, featuring an average target price of $1,755.75
Major firms including Bank of America, Bernstein, and Citigroup maintain targets ranging from $2,500 to $3,000
The stock currently trades at a forward price-to-earnings ratio of merely 7.6x based on FY2027 earnings projections of $208.22

SanDisk (SNDK) shares have experienced a sharp downturn this week, shedding 24.8% across four consecutive sessions despite the absence of negative fundamental news. The memory chip manufacturer, which soared over 6,000% from June 2025 through June 2026, currently trades near $1,411 — approximately 39% below its all-time high reached in June.

Sandisk Corporation, SNDK

There’s been no earnings revision downward. No reduced guidance. Simply a natural correction taking place.

This week’s decline positions SNDK for its most significant weekly retreat since March 2025. Despite the selloff, Wall Street’s analyst community remains steadfast. Not one analyst has downgraded their rating on the stock throughout the week’s turbulence.

Analyst Sentiment Remains Strong

On July 1, Bank of America analyst Wamsi Mohan reaffirmed his Buy recommendation while lifting his price objective to $2,500, pointing to a NAND supply constraint he anticipates will persist into 2027. Bernstein established a $3,000 target on June 30. Citigroup matched with a $2,500 price target on June 25.

The collective analyst view maintains a Buy rating with a mean price objective of $1,755.75 — significantly higher than current trading levels.

SanDisk’s next scheduled earnings announcement isn’t until August 5 following market close. The market has received no fresh fundamental data to justify this week’s movement.

The decline appears more characteristic of profit-taking and momentum reversal rather than a reassessment of underlying business quality.

Understanding the Context of Recent Performance

Prior to this week’s downturn, SNDK had surged 563% year-to-date, claiming the position of top performer within the Nasdaq-100 index by a substantial margin. From its 52-week low of $40, the stock had climbed approximately 3,748% at its zenith.

Such dramatic appreciation creates vulnerability. When virtually every shareholder holds unrealized gains and limited long-term institutional ownership exists to stabilize prices, initial profit-taking can cascade rapidly.

Yet the underlying business fundamentals remain solid. SanDisk has secured $42 billion in long-term supply agreements linked to AI-driven data center expansion. Both revenue and earnings per share are advancing at triple-digit percentage rates year-over-year. Profit margins continue expanding.

For the ongoing fiscal year, Wall Street projects earnings per share of $66.51. Looking ahead, the consensus estimate reaches $208.22 — implying the stock trades at merely 7.6x forward earnings based on those projections.

That valuation multiple appears modest for an enterprise experiencing this growth trajectory. Whether investors will assign a higher valuation depends on whether artificial intelligence infrastructure investment continues at the levels major cloud providers have indicated.

The next significant catalyst arrives with the August 5 earnings release.

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