Sandisk Corp. (SNDK) shares took a hit Thursday as the market rotated out of high-momentum AI hardware and memory stocks into software names. It's the kind of sector-wide profit-taking that tends to happen after a massive run — and Sandisk has had one for the ages.

The stock was down 2.54% in premarket trading at $1,980.68, according to market data. Nasdaq futures were off 0.07%, while S&P 500 futures edged up 0.09%.

Profit-Taking After a Monster Rally

Thursday's dip follows some recent volatility. Sandisk entered the week up more than 756% year-to-date and a staggering 4,297% over the past year. When stocks climb that fast, sharp pullbacks are almost inevitable as investors lock in gains.

But the bigger picture is still impressive. Even after Wednesday's premarket decline on a broader risk-off day, the stock's year-to-date return is still astronomical.

Bank of America Sees Supply/Demand Imbalance Through 2027

The pullback comes despite some very bullish long-term projections from Wall Street. On Wednesday, Bank of America analyst Wamsi Mohan reiterated a Buy rating on Sandisk and raised his price target from $2,100 to $2,500.

"We expect supply/demand imbalance in the NAND market to remain through 2027," Mohan wrote in a client note, adding that pricing should hold up through mid-2027.

Mohan modeled $9.1 billion in revenue and $37.01 earnings per share for the June quarter, well above consensus estimates and the company's own guidance of $7.75 billion to $8.25 billion in revenue.

China Supply Risks Loom

Traders are also focused on competitive risks from China. Mohan flagged Yangtze Memory Technologies Co. (YMTC) as a key structural risk, noting that fresh supply could unwind NAND pricing faster than expected. His base case assumes YMTC will focus on domestic Chinese customers rather than global markets.

Separately, industry analyst Ming-Chi Kuo noted Sunday that the "memory supply-demand gap will keep widening through 2027." Kuo also said that Apple Inc. (Apple (AAPL)) is actively lobbying the U.S. administration regarding ChangXin Memory Technologies (CXMT) to secure additional DRAM supply sources.

Technical Levels: Still Bullish, But Extended

The bigger-picture trend is still pointed up. The stock is trading 1.9% above its 20-day simple moving average ($1,956.03), 25.1% above its 50-day SMA ($1,593.62), and 186.7% above its 200-day SMA ($695.08). Those distances show how extended the longer-term move has been, even after the recent cooling.

The relative strength index sits at 54.24 — not overbought, not oversold, just neutral. The moving-average structure remains constructive, with the 20-day above the 50-day and the 50-day above the 200-day — classic bullish alignment for trend followers.

Key resistance is at $2,354.50, near the recent 52-week high of $2,354.39. That's a level that could cap rebounds if sellers defend the prior peak. On the downside, key support is at $1,861, a nearby pivot area that traders may watch as the first line in the sand on pullbacks.

So while Thursday's dip is a reminder that even the hottest stocks take breathers, the long-term setup — strong demand, constrained supply, and Wall Street backing — still looks favorable for Sandisk.