New York, March 5, 2026, 10:31 (EST)
- Sandisk was down about 0.6% in morning trade after a sharp rebound a day earlier.
- Investors have been rotating in and out of memory and storage names as oil prices climb on Middle East supply risks.
- Analysts say the next leg depends on whether the conflict feeds inflation fears and slows tech spending.
Sandisk shares slipped in early trading on Thursday, down about 0.6% at $595.67, after sharp moves earlier in the week as investors reacted to war-driven swings in global markets.
The pullback comes as oil extended its rally on worries the widening U.S.-Israeli war with Iran could disrupt supplies and shipping routes. Brent traded around $84 a barrel and tanker traffic in and out of the Strait of Hormuz, a key oil-shipping chokepoint, has nearly halted, Reuters reported. “Renewed attacks on tankers in the Gulf, along with Chinese measures to reduce fuel exports, pushed prices higher,” UBS analyst Giovanni Staunovo said. Reuters
Those oil swings matter for the market right now because investors have piled into AI-linked technology and memory names, and higher energy prices can quickly revive inflation worries. “That combination is giving the market some optimism, which will be tested over the coming weeks,” Jim Awad, senior managing director at Clearstead Advisors, said after a tech-led rebound on Wednesday. Richard Bernstein of Richard Bernstein Advisors said the war’s duration could drive the next bout of volatility. Reuters
Sandisk has been a case study in that volatility. The stock dropped 8.7% on Tuesday to $565.41, then jumped 5.95% on Wednesday to $599.06, according to Reuters data, before easing on Thursday. Reuters
Tuesday’s selloff hit most corners of Wall Street as investors weighed whether the conflict would persist long enough to lift prices and complicate central bank policy. “It’s spreading and starting to potentially impact energy infrastructure,” Chuck Carlson, chief executive of Horizon Investment Services, said. Oliver Pursche, senior vice president at Wealthspire Advisors, said: “This is the fear of it getting worse.” Reuters
The jitters were even sharper in Asia. South Korea’s benchmark KOSPI sank 12.1% on Wednesday in its biggest one-day percentage drop on record, and chipmakers Samsung Electronics and SK Hynix fell 11.7% and 9.6%, respectively, Reuters reported. “This looks more like a positioning unwind and risk reduction,” said Tareck Horchani at Maybank Securities, pointing to crowded trades in the market. Reuters
Sandisk, based in Milpitas, California, develops and sells NAND flash-based storage products. NAND flash is a type of memory chip used in devices such as solid-state drives, or SSDs, which store data without spinning disks. The company sells SSDs and other flash products into cloud, client and consumer markets, Reuters data shows. Reuters
The stock has also been tied to the “AI buildout” narrative, as data centers expand and demand more storage alongside computing power. Sandisk’s shares surged in late January after it forecast quarterly profit and revenue well above Wall Street estimates, helped by AI-driven demand, Reuters reported at the time. Reuters
Peers have been moving in the same weather. Micron Technology is the most direct U.S. read-through for memory chips, while Western Digital and Seagate sell a mix of storage hardware that competes with, or complements, flash-based products depending on the workload.
But the trade can turn quickly. Memory markets are cyclical — prices can rise when supply is tight and fall when new capacity comes online — and a prolonged oil shock could squeeze consumers and corporate budgets, leaving even AI-related spending less predictable than investors have priced in.
For now, traders are watching the oil tape and headlines out of the Gulf as closely as earnings models. Sandisk’s next direction is likely to hinge on whether energy-driven inflation fears intensify — or ease — and whether demand for high-end storage keeps absorbing supply.
