SanDisk shares slump over 13% as selling pressure hits despite strong NAND demand

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Sandisk slides 13.20% today

Highlights

SanDisk posted a $1.64 billion annual loss following its February 2025 spin-off, impacted by volatile NAND pricing and inventory adjustments.
The company secured over $62 billion in long-term supply contracts, establishing robust multi-year revenue foundations despite ongoing sales pressure.
Shares face short-term downside after a sharp intraday drop, but technicals indicate high probability of a rebound toward $1,896 over the next week.

Multi-year contracts and S&P 500 ranking offset volatility concerns

SanDisk separated from Western Digital in February 2025 and reported a $1.64 billion loss on $7.36 billion in annual revenue as volatility in NAND pricing and inventory adjustments persisted. New supply contracts totaling over $62 billion were signed, securing multi-year revenue streams for the independent company. These developments were accompanied by the emergence of SanDisk as a top performer in the S&P 500, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees SanDisk’s sharp drop as a clear warning signal. He notes that despite robust demand for NAND and massive new contracts, recent results—a $1.64 billion loss—underline persistent risks and ongoing volatility. The stock’s break below the 20- and 50-day moving averages signals trend deterioration and suggests restrictive price action ahead. He points to mixed technical momentum and an overbought intraday profile as further reasons for caution. "Until SanDisk proves it can turn contract wins into sustainable profits, I remain defensive on the outlook."

Viktoras Karapetjanc, expert at Traders Union, remains constructive on SanDisk’s prospects. He highlights the $62 billion in new supply contracts as proof of strong institutional confidence and future revenues. Karapetjanc notes that, despite short-term technical weakness, the long-term bullish structure remains intact. He sees the current trading range as an opportunity for accumulation. "Further growth is expected as robust demand and new contracts set a solid base for recovery."

Momentum divergence as price holds above long-term average

SanDisk trades below the 20-day moving average at $1,982 and just under the 50-day at $1,688, with price still well above the 200-day moving average at $745.23. Immediate resistance stands at $1,688 and support is near $1,659, marking a setup where short- and medium-term downside prevails against a long-term bullish structure. Momentum indicators are mixed: the MACD and ADX both indicate upward momentum, while the RSI at 52.12 suggests a tilt to a buy. The CCI and Stochastic RSI remain neutral. Bull/Bear Power (BBP) at 57.58 reflects that buyers dominate intraday momentum, yet the overbought reading warns of fatigue. The Awesome Oscillator (AO) signals building selling pressure, and intraday volatility registers at 8.25% after a sharp slide today.

Previously it was reported that SanDisk was experiencing significant short-term selling pressure despite maintaining a broadly bullish long-term trend following its spin-off from Western Digital. The current article strengthens this view by highlighting ongoing volatility and mixed momentum signals, with traders advised to watch for potential direction shifts as the price approaches key support at $1,659.

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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