SanDisk Corporation (NASDAQ:SNDK) shares fell over 1% in early trading on Tuesday as investors weighed semiconductor tariff uncertainty against a bullish long-term memory outlook from Mizuho.
Tariff Uncertainty Pressures Chip-Linked Stocks
The Trump administration is reportedly considering new semiconductor tariffs that could extend to products containing chips, including laptops, gaming consoles and data center servers.
Commerce Secretary Howard Lutnick supports linking tariff relief for foreign companies to investments in U.S. chip production.
The White House pushed back on the reports, saying tariff speculation should be treated as "baseless speculation" unless officially announced. It also reiterated its focus on reshoring critical manufacturing through a "nimble, nuanced, and multi-faceted approach."
Potential tariffs have raised concerns about higher end-product costs and added uncertainty across hardware and data-center supply chains tied to AI infrastructure.
Mizuho Stays Bullish On SanDisk
Mizuho maintained an Outperform rating on SanDisk while trimming its price forecast to $1,875 from $1,900.
The firm expects SanDisk’s earnings to grow fivefold between fiscal 2026 and fiscal 2028 as tight memory supply supports the broader industry outlook.
Mizuho also sees potential for SanDisk to repurchase 25% to 30% of its outstanding shares using an estimated $30 billion-$50 billion in free cash flow during 2027 and 2028.
Nicholas Mugalli, founder and CEO of World Trade Securities, highlighted Mizuho’s outlook and said SanDisk remains undervalued despite its strong stock performance.
Top ETF Exposure
- Invesco S&P 500 Pure Growth ETF (NYSE:RPG): 7.07% Weight
- First Trust US Equity Opportunities ETF (NYSE:FPX): 6.95% Weight
- Invesco S&P Spin-Off ETF (NYSE:CSD): 6.15% Weight
Significance: Because SNDK carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action
SNDK Stock Price Activity: SanDisk shares were down 1.54% at $1542.61 on Tuesday, according to Benzinga Pro data.
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