SanDisk Corp's stock has experienced a sharp decline of more than 10% following Google's announcement of its TurboQuant compression algorithm, raising fears of reduced future demand for memory chips. This market reaction reflects broader uncertainties about the longevity of memory demand in the evolving AI landscape. While Bank of America maintains a bullish outlook with a price target increase to $900, SanDisk must navigate significant market pressures that challenge its growth assumptions and competitive position.
“The announcement triggered a sharp sell-off in memory-related stocks, with shares of Samsung Electronics Co., Ltd., SK Hynix, GigaDevice, Montage Technology, Micron Technology Inc., and SanDisk Corp. moving lower as investors worry about reduced demand for memory chips.”
“He explained that efficiency gains may actually drive higher overall demand by making AI cheaper and more accessible.”
“Sandisk (SNDK), spun off from Western Digital’s flash-memory business, has also benefited from the broader storage rally but recently pulled back.”
“For Sandisk, BofA cited a 'strong NAND outlook' and tightening supply, noting that pricing 'continues to be strong' and that customers are increasingly seeking long-term agreements. Sandisk’s price target was increased to $900 from $850.”
“BofA cited a 'strong NAND outlook' and tightening supply, noting that pricing 'continues to be strong' and that customers are increasingly seeking long-term agreements.”
“TurboQuant directly questions long term memory demand assumptions that underpin Sandisk's storage focused business.”
“✅ Recent Momentum: The 30 day return of -3.07% reflects pressure following the TurboQuant news.”
“MICRON TECHNOLOGY (MU) shares remained under pressure this week, falling nearly 16%, as investors reassessed the outlook for memory pricing and AI-driven demand. In particular, shares dropped nearly 7% on Thursday after Alphabet unveiled its TurboQuant compression technology, which it said reduces memory usage and improves AI model efficiency. The development raised concerns about potential demand erosion for memory chips, weighing on the broader sector. Shares of other memory and storage suppliers, including Sandisk (SNDK), Western Digital, and Seagate Technology, also fell.”
“Looking ahead, SanDisk anticipates demand will continue to exceed available supply through at least calendar year 2026.”
“This sustained imbalance is expected to support favorable pricing conditions and improved operating leverage, positioning the company for meaningful revenue and earnings expansion in fiscal 2026 and 2027.”
“Sandisk's focus on scalable storage architecture positions it to help the AI infrastructure boom, aside from its role as a network equipment supplier. Its advanced high-density drives saw robust take rates from AI hyperscalers, accelerating revenue growth and expanding margins.”
“The price is up 1,070% over the last year and 160% just in 2026; out of reach for some retail investors. The desire to broaden ownership beyond institutional investors could inspire Sandisk management to opt for a split.”
