NEW YORK, Feb 4, 2026, 16:08 (EST) — After-hours
Sandisk Corp (SNDK.O) shares dropped roughly 16% Wednesday, closing near $584.85. Traders pared back on pricey tech stocks linked to the AI sector. The stock fell $110.66 from its previous close, with around 26.4 million shares changing hands.
This matters because Sandisk is a popular bet on data-center expansions, where sentiment can shift abruptly. A steep decline in a heavily traded stock often drags down the broader storage and chip sector, even if the company’s fundamentals remain unchanged.
U.S. stocks closed lower as doubts grew over high valuations and whether the AI rally has run its course, with declines in Advanced Micro Devices and other tech firms weighing on the Nasdaq. “The market is suddenly skeptical and concerned,” said Jed Ellerbroek, portfolio manager at Argent Capital. Josh Chastant of GuideStone Funds added his team is “a bit bearish on software in general.” Alphabet shares dipped ahead of earnings due after the bell. (Reuters)
Sandisk slipped back just two sessions after a solid surge in the chip sector. On Monday, the stock surged 15.4% amid a wave of AI-driven optimism, lifting AMD and Micron as well, Reuters noted. “The fundamentals are good and earnings are strong,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. (Reuters)
Sandisk makes NAND flash-based storage devices — memory chips designed for data storage — covering solid-state drives and removable cards. These products serve cloud, client, and consumer markets, the company profile shows. (Reuters)
The company kicked off trading on Nasdaq in February 2025 following its split from Western Digital, adopting the ticker “SNDK,” it said then. (Sandisk)
Last week, Sandisk forecasted fiscal third-quarter profit and revenue far surpassing analysts’ estimates, also announcing an extension of its flash supply deal with Japan’s Kioxia through 2034. Reuters noted the stock surged roughly 160% in January, alongside gains for Western Digital, Seagate, and Micron, fueled by tight supply and AI-driven demand. (Reuters)
That said, the setup swings both ways. If investors continue pulling back from pricey AI winners, volatility is likely to stay high — and at the first hint of a slowdown in data-center expansion, storage and memory stocks would take a quick hit.
After the close, investors will zero in on Alphabet’s earnings. On Thursday, all eyes will be on chip stocks to see if buyers step back in when trading resumes.
