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Sandisk Corp. (NASDAQ: SNDK) stock remained under pressure Thursday as investors weighed upcoming earnings, growing competition concerns from China and profit-taking after the stock's sharp rally in 2026.
Broader weakness in artificial intelligence-linked memory stocks also weighed on sentiment. Investors remain cautious about rising borrowing costs and the sustainability of AI infrastructure spending.
Sandisk is scheduled to report fiscal first-quarter earnings on Oct. 29, 2026.
Analysts expect earnings per share of $46.22, up from $1.22 a year earlier. Revenue is projected to reach $10.64 billion, compared with $2.31 billion in the year-ago quarter.
The company previously forecast quarterly revenue of $10.3 billion to $10.8 billion and adjusted earnings of $44 to $46 per share.
With expectations running high, investors will closely watch profit margins, pricing trends and demand for enterprise storage products used in AI data centers.
Sandisk trades at a price-to-earnings ratio of 19.0, while analysts maintain a consensus Buy rating and an average price forecast of $2,303.57.
On Oct. 6, Mizuho maintained an Outperform rating and raised its price forecast to $2,050. Earlier, Rosenblatt initiated coverage with a Buy rating and a $2,400 forecast on Sept. 22.
Fresh competition concerns emerged after reports that China's ChangXin Memory Technologies had made progress in developing next-generation DRAM chips and server-grade DDR5 memory.
The developments fueled concerns about growing Chinese competition and triggered selling across memory stocks.
However, Sandisk primarily produces NAND flash memory, which stores data in solid-state drives. DRAM serves a different purpose, providing temporary memory for computing tasks.
As a result, ChangXin's progress does not pose the same direct competitive threat to Sandisk as it does to DRAM manufacturers. Still, broader concerns about future memory supply and pricing have weighed on investor sentiment.
Sandisk's substantial gains in 2026 have also encouraged investors to lock in profits ahead of earnings.
Meanwhile, rising Treasury yields and concerns about debt-funded AI infrastructure expansion have pressured technology stocks.
Although AI data centers continue to support demand for high-capacity storage, investors are questioning whether strong pricing and profit margins can persist.
Potential weakness in consumer storage demand adds another concern as Sandisk prepares to report results.
Sandisk also holds significant weightings in several exchange-traded funds.
The Schwab U.S. Small-Cap ETF (NYSE: SCHA) has a 5.15% weighting, while the Invesco S&P 500 Pure Growth ETF (NYSE: RPG) holds 8.18%.
Meanwhile, the First Trust U.S. Equity Opportunities ETF (NYSE: FPX) has a 6.86% weighting.
These holdings could amplify trading activity as fund rebalancing and investor flows affect demand for Sandisk shares.
Despite the recent pullback, Sandisk remains above its long-term moving average, suggesting its broader upward trend remains intact.
Sandisk shares are trading 10.6% above their 200-day simple moving average (SMA) of $1,199.66, indicating continued long-term strength.
However, the stock is 21.3% below its 20-day SMA of $1,685.97 and 16.6% below its 50-day SMA of $1,591.35. These levels point to sustained selling pressure in the near term.
Meanwhile, the moving average convergence divergence (MACD) indicator remains below its signal line. The negative histogram also suggests weakening bullish momentum.
The broader trend remains constructive, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA.
However, buyers would need to push the stock above its shorter-term moving averages to signal a stronger recovery.
Key resistance stands near $1,446.50, while support sits around $1,325.
Sandisk's 52-week range of $120.96 to $2,354.39 also highlights the stock's sharp price swings.
Sandisk shares fell 5.58% to $1,325 in Thursday's premarket trading, according to market data.
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