Sandisk Corporation experienced notable selling pressure following an institutional positioning report from Morgan Stanley. The investment bank highlighted that large institutional funds hold a disproportionate over-allocation in the semiconductor manufacturer relative to its benchmark S&P 500 index weighting. This insight raised concerns regarding crowded positioning and potential supply overhang, prompting institutional portfolio managers to lock in profits and execute tactical rebalancing.

The downward movement follows a sharp multi-day surge triggered by the company’s recent Investor Day presentation and stellar quarterly earnings. Recent disclosures emphasized…