SanDisk Shares Retreat 17% in Quarter Despite 628% Annual Gain

SanDisk shares fell 17% in the third quarter, while the S&P 500 gained 4.3%. The pullback cut the memory-chip maker’s year-to-date gain to 628%.

Analysts cited profit-taking after a strong run, concerns about growth in AI spending and worries that NAND prices may moderate in 2027. SanDisk’s earnings report, scheduled for Oct. 29, may provide a catalyst for investors, Yahoo Finance’s Brian Sozzi wrote.

At its August investor day, SanDisk said it had signed eight “New Business Model” agreements. They cover roughly 50% of its bits in fiscal 2027 and about two-thirds in fiscal 2028, giving the company more visibility into customer demand and pricing.

Executives also set long-term guidance for mid-to-high-teens revenue growth and approximately 80% non-GAAP gross margins from fiscal 2028 through 2030.

Citigroup analyst Asiya Merchant said AI infrastructure and inference are driving stronger, longer-term demand for NAND. She pointed to data-center demand, enterprise SSD adoption, AI data lakes and KV cache needs. SanDisk expects smartphones, PCs and other edge devices to reaccelerate from 2027 as AI-enabled devices use more storage per unit, Merchant said.