Sandisk Corporation (Sandisk (SNDK)) shares fell more than 3% in Friday's premarket session as investors repositioned ahead of the company's upcoming quarterly earnings report and took profits in memory stocks. The broader memory sector traded lower, with peers Micron Technology Inc. (MU), Western Digital Corp. (WDC) and SK hynix Inc. also declining in premarket trading.

Nasdaq futures rose 0.14%, while S&P 500 futures gained 0.27%, suggesting the broader market was relatively calm. Sandisk has been in focus as investors continue to favor memory and storage companies tied to AI infrastructure spending, tight supply conditions and hyperscale data center expansion. But Friday's dip suggests some profit-taking ahead of the earnings report.

Earnings In Focus

Sandisk is scheduled to report quarterly results on Aug. 5. Analysts expect earnings of $33.38 per share, compared with 29 cents a year earlier, on revenue of $8.24 billion, up from $1.90 billion in the prior-year quarter. That's a massive jump, reflecting the company's strong position in the memory market.

The stock trades at about 55 times earnings, reflecting a premium valuation relative to many peers. Wall Street maintains a consensus Buy rating with an average analyst price forecast of $1,854.13. Recent analyst actions include:

• Susquehanna reaffirmed its Positive rating and lowered its price forecast to $3,050 on July 23.
• Wells Fargo maintained its Equal-Weight rating and raised its price forecast to $1,620 on July 22.
• Bank of America Securities reiterated its Buy rating and raised its price forecast to $2,500 on July 1.

ETF Exposure

Sandisk is a significant holding in several exchange-traded funds, including the Roundhill Memory ETF (DRAM), where it represents 5.42% of assets, the Invesco S&P 500 Pure Growth ETF (RPG) at 7.29%, and the Invesco Dorsey Wright Technology Momentum ETF (PTF) at 6.80%. Large inflows or outflows from these funds could result in automatic buying or selling of Sandisk shares.

Sandisk shares were down 3.31% at $1,557.00 during premarket trading on Friday.