Sandisk’s stock, which surged over 490% in 2026, has recently declined 20% amid sector-wide sell-offs and concerns over memory supply and AI spending, but long-term prospects remain optimistic according to analysts.
Sandisk shares have given investors a reminder that even a spectacular rally can reverse quickly. The stock has surged more than 490% in 2026, but it has also fallen about 20% over the past month as the semiconductor trade hit a rough patch, according to The Motley Fool.
Part of the weakness came from a wider rout in chip stocks between July 24 and July 28. CNBC reported, using FactSet data, that 20 of the world’s most valuable semiconductor companies lost about $1.3 trillion in market value over that stretch, with Nvidia alone shedding $238 billion. Analysts and investors have been reassessing whether the enormous sums being directed towards AI infrastructure can sustain their recent pace, especially as newer AI models appear to deliver stronger performance at lower cost.
For Sandisk, the concern is not only valuation but also the memory cycle itself. Money Morning reported earlier in July that the company fell 14.25% on July 2 during a broader sector sell-off, after a major memory maker signalled that NAND oversupply could last at least into the third quarter. Another report from Money Morning on July 17 said Sandisk was again caught up in a wider decline as investors questioned the durability of AI-related capital spending. FXLeaders also described a steep 25-day slide in the shares as traders worried about competition in memory and a possible drop in spot pricing.
Even so, the longer-term picture still looks supportive for now. The Motley Fool noted that supply and demand for memory and storage used in AI are expected to remain tight until at least 2028, and that view is echoed in market commentary cited across the sector. That imbalance helps explain why many analysts still see upside in the stock despite its huge run-up. CNBC’s tracking of analyst estimates showed that 77% of the 30 analysts covering Sandisk rated it a buy, with a median 12-month target of $2,500. Sandisk is also pursuing longer-term supply agreements, which may pressure margins but could provide steadier revenue and reduce the risk of a return to the old boom-and-bust pattern.
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