Why Sandisk Stock Dropped Again Today
Yahoo Finance ·
Sandisk ( SNDK 8.32% ) stock slid 7.3% through 3:05 p.m. ET Wednesday after Argus Research initiated coverage of the computer memory stock with a lukewarm "hold" rating in the midst of widening worries about the durability of demand for pricey computer memory chips. In Argus's note, covered on TheFly.com today, the analyst admits Sandisk is "well-positioned ... in NAND flash solutions." This is hardly new information, however, and investors have already rewarded Sandisk for its leading position with a more than 4,000% increase in share price this year. Argus acknowledges the logic: Sandisk makes NAND, which artificial intelligence data centers need to run their AI chips. Supply is low, demand is high -- and rising -- and this has driven up both prices and profit margins to great heights. Argus expects this trend to continue, but also wants to hedge against the risk that "any tempering in demand could cause a severe reaction in product pricing and the share price."
DYAX Investor Sentiment
Bullish (Long) 61% · Bearish (Short) 39%
268 participants