Story perspectives

SanDisk Shares Drop 31% Amid AI Spending Doubts

7/10/2026

Summary

Story summary

Sandisk's shares fell about 31% in July after a 3,600% rally, trading $1,880 on July 7, 2026, with doubts over AI spending.
Sandisk reported $5.95 billion revenue, a 97% increase, and $23.41 earnings per share in its quarter.
The company secured $42 billion in multiyear contracts and a backlog $11 billion.
It forecast Q4 revenue of $7.75-$8.25 billion.
Analysts expect tight NAND supply and AI data-center demand to keep the stock near 27 times earnings.

History

Historical Context

The March 10 2000 NASDAQ peak of 5,048.62 marked the height of the dot-com bubble, which then fell 78 % by October 2002 after Alan Greenspan’s rate hikes and the April 3 2000 Microsoft antitrust ruling triggered sharp sell-offs. That crash taught investors to scrutinize speculative AI-driven rallies, echoing the earlier telecom bust of 2001.

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Story summary

Sandisk's shares fell about 31% in July after a 3,600% rally, trading $1,880 on July 7, 2026, with doubts over AI spending.
Sandisk reported $5.95 billion revenue, a 97% increase, and $23.41 earnings per share in its quarter.
The company secured $42 billion in multiyear contracts and a backlog $11 billion.
It forecast Q4 revenue of $7.75-$8.25 billion.
Analysts expect tight NAND supply and AI data-center demand to keep the stock near 27 times earnings.

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