SanDisk (SNDK) shares fell approximately 16.1% in the week ending 16 October 2026, dropping from $1,581.82 to $1,327.83 as concerns about Chinese competition, AI spending and US inflation weighed on semiconductor stocks.
The sell-off followed a sharp rally earlier this year, with investors reassessing the outlook for the memory and storage sector.
Chinese Memory Technology Sparks Concerns
One of the main triggers was news that Chinese memory chip manufacturer ChangXin Memory Technologies (CXMT) had made progress on a new DRAM architecture designed to increase memory density.
The reports contributed to selling across memory stocks, including SanDisk, Micron, Seagate Technology and Western Digital.
However, CXMT’s reported advances concern DRAM, whereas SanDisk specialises in NAND flash memory, which is used in solid-state drives and other storage products.
The news therefore represents an indirect competitive concern for SanDisk rather than a direct challenge to its core products.
AI Spending and Inflation Add Pressure
Investors are also becoming more cautious about the sustainability of investment in artificial intelligence infrastructure. Concerns about the cost of data-centre expansion and the returns on AI investment have contributed to a broader sell-off in technology shares.
US inflation data added to the pressure with figures released on 14 October showing annual consumer price inflation rising to 3.7% in September, up from 3.4% in August. Core inflation, which excludes food and energy, reached 2.6%.
The figures increased concerns that the Federal Reserve could keep interest rates higher for longer, putting further pressure on technology stocks.
SanDisk Earnings Report Due on 29 October
SanDisk is scheduled to report its fiscal first-quarter 2027 results on 29 October. Investors will be watching for updates on NAND flash pricing, storage demand, profitability and management’s outlook.
The results will provide a fresh indication of how the company is performing amid concerns about competition and uncertainty surrounding AI spending.
For now, SanDisk’s decline is a combination of sector-wide selling and changing investor sentiment, rather than confirmed evidence of a deterioration in its underlying business.
