Sandisk Shares Drop 24% in October Despite Massive Revenue Growth Driven by AI Demand
Sandisk (SNDK) experienced a 24% decline in its stock price during October, despite reporting exceptional fiscal 2027 first-quarter results. The company saw revenue surge 378% year-over-year, fueled largely by a 1,682% increase in data center revenue as demand for NAND flash memory critical to AI inference continues to climb. Market volatility appears driven by fears of a potential slowdown in the cyclical memory market. To mitigate this risk, Sandisk is implementing a 'New Business Model' (NBM) involving long-term agreements extending past 2030. Despite the recent sell-off, the company remains up over 350% year-to-date and is scheduled for an eight-for-one stock split on November 19.
Coverage
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