Sandisk Corp. (NASDAQ:SNDK) stock fell nearly 3% in Thursday premarket trading as broader market weakness outweighed the company’s constructive outlook for AI-driven storage demand.
S&P 500 futures fell about 0.6%, creating a softer backdrop for technology stocks.
The stock has surged over 1,800% in the last 12 months, driven by the artificial intelligence frenzy and a global crisis of NAND flash memory and enterprise SSDs. Meanwhile, rivals like Micron Technology, Inc. (NASDAQ:MU), Western Digital Corp. (NASDAQ:WDC), and Seagate Technology Holdings Plc. (NASDAQ:STX) gained between 300%-600%.
Sandisk ranks among the five largest global suppliers of NAND flash memory semiconductors. The company produces all of its flash chips in Japan substantially through its joint-venture structure with Kioxia.
AI Inference Drives NAND Demand
At the Goldman Sachs Communacopia + Technology Conference, Sandisk executives said growing AI inference workloads are reshaping the NAND flash market.
Data centers now account for more than half of industry demand, according to management.
CEO David Goeckeler said large cloud customers increasingly want predictable supply, while CFO Luis Visoso said Sandisk has signed eight strategic agreements, with some lasting as long as five years.
The company views AI inference as a multi-year catalyst for NAND flash memory and enterprise solid-state drives.
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Sandisk Maintains Strong Technical Trend
Despite Thursday’s premarket decline, Sandisk remains well above its major moving averages.
Shares trade about 7.8% above the 20-day SMA, 17.1% above the 50-day SMA and 61.5% above the 200-day SMA.
The 20-day moving average also remains above the 50-day average, while the 50-day stays above the 200-day average, supporting the longer-term upward trend.
Sandisk Carries Significant ETF Exposure
Sandisk represents 5.15% of the Schwab US Small-Cap ETF (NYSE:SCHA), 8.38% of the Invesco S&P 500 Pure Growth ETF (NYSE:RPG) and 8.82% of the First Trust US Equity Opportunities ETF (NYSE:FPX).
Significant inflows or outflows from these funds can translate into buying or selling of Sandisk shares.
SNDK Stock Price Activity: SanDisk shares were down 2.56% at $1769.98 during premarket trading on Thursday, according to Benzinga Pro data.
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