SanDisk Shares Drop 20% Amid AI Sector Selloff and Regulatory Concerns
SanDisk (SNDK) shares plummeted 20% on Thursday, November 5, as part of a broader selloff in artificial intelligence and semiconductor stocks. Despite reporting strong fiscal first-quarter results that beat Wall Street estimates, the company's stock fell alongside major players like Nvidia and Broadcom. The decline is largely attributed to investor fears regarding potential regulatory hurdles for AI data center expansion following Democratic victories in recent midterm elections. The selloff had a significant impact on the wider market, with the Nasdaq Composite dropping over 5% and the iShares Semiconductor ETF (SOXX) falling 11%. While SanDisk's NAND flash memory demand remains robust—evidenced by a 61% quarterly increase in data center revenue—analysts have begun lowering price targets due to concerns over high valuation multiples and the sustainability of the AI infrastructure boom.
Tickers: $AVGO $NVDA $SNDK $WDC
Topics: AI sector selloff NAND flash memory political impact on tech semiconductors stock market crash
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