SanDisk Stock Plummets 50% on China Chip Competition Fears
SanDisk's stock (NASDAQ: SNDK) has plummeted over 50% from its all-time high of $2,354.39, reaching $1,096.10 on Wednesday, July 29, 2026. The sharp decline began after CXMT's $8.6 billion IPO in Shanghai surged 466% on debut, raising concerns about Chinese NAND supply potentially eroding SanDisk's pricing power. The company's bullish run, driven by AI-driven enterprise SSD demand, has been overshadowed by fears of increased competition from Chinese semiconductor manufacturers.
The CXMT IPO and reports that Apple is evaluating CXMT DRAM chips for China-market products have intensified market apprehension. These developments suggest that Chinese memory technology has matured faster than anticipated, threatening the supply-demand balance that previously benefited SanDisk. The broader semiconductor sector has also felt the pressure, with companies like Micron, SK Hynix, and Western Digital experiencing significant declines.
SanDisk's next critical catalyst is its earnings report on August 5, 2026. Analysts expect earnings of approximately $33 per share, a dramatic increase from $0.29 a year ago. However, the focus will be on forward guidance, particularly how management addresses the impact of Chinese competition on pricing and demand. A reaffirmation of the current pricing environment could spark a relief rally, while any indication of eroding margins or demand would likely extend the selloff.
Technically, SanDisk's stock has broken below multiple Fibonacci support levels, with the next key support at $924.90. The stock is deeply oversold, with an RSI near 22, and the $1,000 psychological level is being closely watched as a potential floor. Analysts have an average target of $2,217.77 for SanDisk, implying significant upside if the fundamental thesis holds through the earnings call.