The summer rout in momentum stock Sandisk (SNDK) could end depending on its Wednesday earnings report.
The numbers are likely to be strong, which could put the stock back on the right course.
AlphaSpace stat of the evening: $1,707
Sandisk stock has had a rough go of it. Ahead of the company’s earnings report, the stock has breached its 50-day and 100-day moving averages, per Yahoo Finance AlphaSpace data. The stock hasn’t tested the 200-day moving average amid the summer slide.
If Sandisk is able to surpass Wall Street’s high expectations for the quarter and strike another bullish tone on its earnings call, the stock could retest the 50-day moving average at $1,707. That would still put the stock well below its late-June record high of about $2,354.
The finer details
Companies such as Sandisk, SK Hynix (SKHY), Samsung Electronics (005930.KS), and Micron (MU) have largely sold out of their premium AI memory chips through much of 2026. Customers like Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), and Meta (META) are racing to build AI infrastructure.
The shortage has pushed memory prices sharply higher and given suppliers greater pricing power after several years of weak industry conditions. Experts expect memory supply to remain constrained into 2027, creating a favorable backdrop for the industry’s largest producers.
The dynamic pushed the stock prices of Sandisk, Micron, and other players in the chip space to record highs in late June. Since then, however, the pullbacks in the space have been enormous due to fears of Big Tech overspending on AI.
Sandisk and Micron are down 25% and 13%, respectively, over the past month, according to Yahoo Finance AlphaSpace data.
But Apple’s (AAPL) earnings report last week reminded everyone that the demand and pricing backdrop for memory chip players remains robust.
Now, Sandisk is poised to do its own reminding.
Revenue for Sandisk in its most recent quarter is estimated to surge to $8.39 billion from $1.90 billion last year.
Wall Street chatter
BofA analyst Wamsi Mohan: “We expect supply/demand imbalance in the NAND market to remain through 2027 and expect pricing to remain strong for longer (through mid-2027), albeit growing at a lower quarter over quarter percentage rate over time. For the June quarter, we model bit growth of 13% quarter over quarter and average selling price growth of 35% quarter over quarter. This is higher than the NAND bit growth reported recently by competitor Micron Technology, but lower than the quarter over quarter average selling price growth reported by that company.”
