Sandisk Corporation (Sandisk (SNDK)) shares slipped more than 2% in Wednesday’s premarket session as investors decided to cash in some chips after a multi-month rally that sent the stock soaring. The dip came even as the broader market looked chipper — Nasdaq futures were up 0.48% and S&P 500 futures gained 0.17%.

Technical Analysis: Cooling Off, But Not Broken

Sandisk is in a bit of a consolidation phase after hitting a swing high back in June. The stock is currently trading below its 20-day simple moving average of $1,960.85, which suggests short-term momentum has faded. But it’s still above its 50-day moving average of $1,713.67, so the intermediate-term uptrend is hanging in there.

The relative strength index sits at 48.23 — neutral territory. That means the stock isn’t overbought or oversold; it’s just taking a breather after June’s heat.

Zoom out, and the picture is still pretty rosy. Sandisk trades well above both its 100-day moving average ($1,232.62) and its 200-day moving average ($761.35). And the 50-day moving average is still above the 200-day — a classic bullish signal that says the long-term trend is your friend.

On the upside, the next resistance level is around $1,861, which is close to the 20-day exponential moving average of $1,851.11. On the downside, initial support is near $1,514.50, with the 100-day moving average offering a stronger safety net if selling picks up.

Analysts Remain Bullish

Wall Street is still pretty smitten with the memory-chip maker. Here’s what the big names are saying:

Bank of America analyst Wamsi Mohan reiterated a Buy rating on July 1 and raised his price target to $2,500 from $2,100. He thinks tight NAND supply and demand conditions could persist through 2027, with pricing staying resilient at least through mid-2027.

Evercore ISI kept its Outperform rating and bumped its price target up to $3,100 from $1,400 — a big jump. The firm is betting on the durability of Sandisk’s earnings and free cash flow over the next several years, with NAND pricing supported by supply-demand imbalances through 2026 and 2027.

Citigroup reiterated its $2,500 price target on June 25, citing sustained AI-driven demand for memory products. Bernstein also raised its target to $3,000 on June 30, pointing to the strength of Sandisk’s long-term enterprise SSD supply agreements.

Earnings Outlook: A Blockbuster Quarter Ahead?

Sandisk is scheduled to report quarterly results on Aug. 5. Wall Street expects earnings of $33.38 per share on revenue of $8.24 billion. For context, a year ago the company reported earnings of just 29 cents per share on revenue of $1.90 billion. That’s a staggering leap, driven by the AI boom and tight memory supply.

The stock trades at about 60.1 times earnings and carries a consensus Buy rating. So even after the rally, analysts still see room to run.

ETF Exposure: The Ripple Effect

Sandisk is a significant holding in several exchange-traded funds, including the Roundhill Memory ETF (DRAM), the Invesco S&P 500 Pure Growth ETF (RPG), and the Invesco Dorsey Wright Technology Momentum ETF (PTF). Large fund inflows or outflows in these ETFs can create additional buying or selling pressure for the stock — something to keep an eye on.

Price Action

Sandisk shares were down 2.39% at $1,715.73 during premarket trading on Wednesday, according to market data.