Why Sandisk Stock Keeps Crashing

Why Sandisk Stock Keeps Crashing

Rich Smith, The Motley Fool

Tue, July 28, 2026 at 5:25 PM GMT+3 2 min read

• SNDK -7.32%
• NVDA -3.55%

Pity investors in Sandisk (NASDAQ: SNDK) stock -- they just can't seem to catch a break.

For three days running, Sandisk stock has fallen 10% or more. Including this morning's 12.5% crash through 9:50 a.m., the semiconductor stock has lost 31% of its value since Thursday evening. But why?

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Big trouble in China

The biggest worry for Sandisk investors, I believe, is the risk that Chinese competition on NAND computer memory chips could ruin the company's high gross profit margins, which topped 78% in the most recent quarter. Yesterday, Chinese chipmaker CXMT (short for "ChangXin Memory Technologies") IPO'ed in Shanghai at a $487 billion market capitalization, raising more than $8 billion in new cash that the company can use to build new factories, expand DRAM production, and help to end the global memory deficit that has helped to inflate profits for companies like Micron (NASDAQ: MU) and Sandisk.

Apple (NASDAQ: AAPL) has already expressed interest in buying memory chips from CXMT. And while CXMT's focus on DRAM chips doesn't pose a direct threat to Sandisk's NAND business currently, there's no guarantee CXMT won't expand into NAND -- or that other Chinese companies won't attempt similar IPOs to bolster their own efforts to steal Sandisk's market share, and compete with it on price.

CXMT's IPO could simply be a portent of risks to come.

The bigger picture for Sandisk

At the same time, Wolfe Research warns today on StreetInsider that investors are broadly concerned about the health of the artificial intelligence economy: whether, even if Sandisk manages to keep its prices high, AI companies will be able to keep paying that high price -- or will be forced to cut spending.

If AI infrastructure budgets start to get cut, you can bet Sandisk's share price will get cut as well.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again

In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you'd invested $5,000 then, you'd be sitting on $2,551,573 today.*

Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It's a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.

Continue »

*Stock Advisor returns as of July 27, 2026

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Micron Technology. The Motley Fool has a disclosure policy.

Why Sandisk Stock Keeps Crashing was originally published by The Motley Fool