SanDisk’s Record Revenue and BiCS10 Launch Can’t Stop a 23% Bear-Market Slide
Published on 07/03/2026 at 16:45 | Redaktion boerse-global.de
The disconnect between SanDisk’s operational momentum and the market’s reaction has rarely been starker. On the same day the memory chip maker began sampling its most advanced flash storage technology, its stock suffered a brutal single-day loss of more than 14%, dragging the shares into bear-market territory after a two-day slide that wiped out nearly a quarter of their value.
The new BiCS10 chip, developed jointly with Kioxia at the Kitakami Fab2 plant in Japan, packs 332 layers of 3D NAND — a 59% improvement in bit density over the previous BiCS8 generation. Interface speeds have been pushed to 4.8 gigabits per second, up 33%, while power consumption has been cut by 10% on the input side and 34% on the output side. The module is designed specifically for AI workloads and enterprise SSDs destined for data centres. SanDisk began sampling the chips on July 2, a milestone that typically generates positive attention.
Instead, the stock crashed 14.13% that same day, closing at $1,762.01. By the end of the following session, it had dropped roughly 23.3% from its recent highs, meeting the technical definition of a bear market. The ruthlessness of the sell-off was compounded by a wider sector rotation: institutional investors have been pulling capital out of semiconductor hardware in favour of AI software and defensive sectors. The Philadelphia Semiconductor Index shed 5% on the day, and rivals Micron and Western Digital also booked heavy losses.
Should investors sell immediately? Or is it worth buying SANDISK?
Morgan Stanley warned on July 3 that the era of “blind buying” in memory chips was over, urging investors to adopt a more selective approach as the market re-evaluates the capital-expenditure efficiency of the AI supply chain. Zacks Research downgraded SanDisk from “Strong Buy” to “Hold” on July 1. Yet other analysts have maintained ambitious price targets: Bernstein and Jefferies both see the stock at $3,000, while Susquehanna has a target of $3,250.
The fundamental picture is at odds with the price action. SanDisk reported third-quarter fiscal 2026 revenue of $5.95 billion, a 251% year-on-year surge, led by its data-centre segment, which posted $1.467 billion in sales — up 233% quarter over quarter. For the current quarter, management guided for revenue between $7.75 billion and $8.25 billion, with non-GAAP earnings per share in the $30-to-$33 range. The company also holds multi-year AI supply contracts worth $42 billion, underscoring how deeply embedded it has become in the data-centre buildout.
Chief technology officer Alper Ilkbahar noted on Friday that the global AI race is shifting from raw compute capacity to storage capacity, as complex models require enormous amounts of data. SanDisk’s balance sheet is entirely debt-free, and a $6 billion share buyback programme gives management additional firepower. Western Digital, a manufacturing partner, recently opened a dedicated facility in Malaysia to help meet rising demand.
On the chart, traders are watching a first support level near $1,500. A break below that could extend the rotation out of memory plays. On the upside, the stock faces resistance at $1,900, with the next hurdle at $2,300. Despite the recent rout, SanDisk’s first-half rally of more than 700% means the year-to-date return remains spectacular — but the gap between the stock’s valuation and its solid operating performance is testing investor patience. Whether the $1,500 floor holds will likely determine if the Street’s bullish targets regain credibility or if the sector rotation deepens further.
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SANDISK Stock: New Analysis - 3 July
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