SanDisk stock slumps around 11.5% as profit-taking and new analyst coverage trigger sharp selloff

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Sandisk slides 11.6% today to $1427.67

Highlights

SanDisk’s 2026 demand surge in memory processors and AI storage drove institutional buying, but recent declines stem from profit-taking and sector weakness.
The company forecasts fiscal Q4 2026 revenue of $7.75–$8.25 billion and adjusted earnings between $30 and $33 per share.
Technicals indicate entrenched selling with strong downside momentum; key levels are $1,481 resistance, $1,426 support, and a probable short-term range of $1,195–$1,659.

ETF flows reverse amid sector pullback and earnings uncertainty

SanDisk saw a dramatic increase in demand for its memory processors, flash storage, and AI infrastructure throughout 2026, becoming a major holding in many ETFs and funds. Recent declines followed new analyst coverage and investor profit-taking and were accompanied by sector-wide pullbacks. The company will report its fiscal Q4 2026 earnings on August 5 with guidance indicating revenue between $7.75 billion and $8.25 billion and adjusted earnings of $30 to $33 per share, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees SanDisk facing clear technical and fundamental headwinds. He notes persistent bearish momentum with decisive selling pressure, both in price action and market indicators. The analyst highlights recent profit-taking and analyst downgrades, exposing a fragile sentiment in the sector. He warns that falling below the $1,426 support level may accelerate losses closer to $1,195. "The stock’s sharp plunge and overwhelming negative signals suggest caution — downside still dominates this market."

Viktoras Karapetjanc, expert at Traders Union, recognizes SanDisk’s recent volatility but maintains a forward-looking stance. He views the company’s strong guidance and its major presence in ETFs as indicators of underlying institutional confidence. Karapetjanc expects the long-term bullish structure to remain intact, given the price holding well above the 200-day average. "This market pullback unlocks new opportunity — further growth is expected as investors refocus on robust fundamentals and the AI-driven expansion story."

Jainam Mehta, market strategist, sees SanDisk in a highly volatile regime with significant tactical inflection points. He notes that oversold indicators and the pending earnings report could catalyze sharp moves either way. The expert suggests traders watch for potential breakout trades above $1,481 or contrarian entries should the stock stabilize. "A tactical approach is key here — momentum could shift quickly if sentiment diverges around upcoming earnings."

Bearish momentum dominates as support holds above long-term average

SanDisk is trading below its 20-day and 50-day moving averages ($1,936 and $1,722), indicating sustained short- and medium-term downside pressure after a sharp drop, but remains well above the 200-day average at $768.96, which supports a still-bullish long-term backdrop. Short-term resistance is evident at the near-term ceiling of $1,481, with support at the near-term floor of $1,426. Momentum signals are decisively bearish: the Moving Average Convergence Divergence (MACD) is negative and neutral, the Average Directional Index (ADX) suggests sellers are in control, and the Relative Strength Index (RSI) is firmly in sell territory. Stochastic RSI, Commodity Channel Index (CCI), and Bull/Bear Power (BBP) all point to oversold conditions, with BBP showing sellers dominate intraday momentum and buyers absent. The price is down $187.33 or 11.6% for the day, opening with a downside gap of $81.99 (about 5%) and now sitting near session lows. Intraday volatility stands at 8.48%. The tone intraday is sharply negative with intense selling pressure following the gap down.

Previously it was reported that SanDisk was experiencing heightened volatility and sustained selling pressure amid sector-wide weakness, despite longer-term structural support. The current deep correction, intensified by recent profit-taking and bearish momentum signals, elevates the importance of monitoring the $1,426 support level, as a decisive move below this threshold could trigger further instability in the sessions ahead.

Source of Data: SNDK Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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