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Why Did SanDisk (SNDK) Stock Crash? AI Chip Selloff, Valuation, and What’s Next

Why Did SanDisk (SNDK) Stock Crash? AI Chip Selloff, Valuation, and What’s Next

TradingKey – SanDisk Corporation (NASDAQ: SNDK) had one of its worst trading sessions of the year in the two days before the July 4 holiday, losing about 10% on one day and 14% the next. The stock has been confused with its former parent, Western Digital (NASDAQ: WDC), and the two have been trading separately since SanDisk’s spinoff was completed in February 2026. It is SanDisk’s flash-memory business, not Western Digital’s hard-drive operations, that has become one of the most talked-about AI trades of 2026 — and the one that just hit a wall.

What Actually Caused SanDisk’s Stock to Drop?

The sell-off wasn’t triggered by bad news from SanDisk itself. On July 1, the Philadelphia Semiconductor Index plunged more than 6% in one day, while…

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