SanDisk Stock Falls 7.14% in Premarket Trading, Down 11% as AI Memory Trade Retreats

On Tuesday, SanDisk stock (NASDAQ: SNDK) extended its selloff, falling 7.14% in premarket trading to approximately $1,187.01, following a 11.02% decline on Monday that closed the session at $1,278.23. The decline is part of a broader semiconductor sector retreat, with memory manufacturers including Micron Technology, SK Hynix and Samsung Electronics also experiencing steep losses as investors reassess valuations tied to the AI infrastructure boom.

The selling pressure reflects growing concerns that the AI memory trade has become overcrowded and that enormous spending on AI infrastructure may not generate sufficient returns. Reports of Nvidia potentially providing $250 billion in financing support for an OpenAI data-center project intensified worries about circular financing. Additionally, progress by Chinese memory-chip makers in developing advanced manufacturing capabilities has raised concerns about future competitive and pricing pressures in the semiconductor industry.