New York, Feb 17, 2026, 10:08 (EST) — Regular session underway
Sandisk Corp lost 3.5% to close at $604.75 on Tuesday, sliding along with the broader memory and storage sector as traders eased off risk following the long weekend. Shares touched a session low at $593.82.
U.S. stocks slid out of the gate following the holiday, with investors on edge over potential shakeups from AI—anxiety that isn’t letting up across industries. “Markets are stress testing business models for their resilience,” said Axel Botte, head of market strategy at Ostrum Asset Management. 1
Eyes were on the Federal Reserve’s meeting minutes and upcoming U.S. data due later this week, as the debate over when rate cuts might land continued to drive high-growth stocks. “A rough week” hasn’t shaken BNY’s Americas macro strategist John Velis or his team—they’re still expecting three cuts before year-end. 2
Shares across the group were down in early trading, reflecting a broader sector retreat instead of anything tied to Sandisk alone. Western Digital edged down 0.7%, Micron gave up 2.6%, and Seagate lost 1.4%.
Sandisk’s stock has swung sharply since late January, after the company topped estimates and set a bold forecast tied to AI momentum. Fiscal second-quarter revenue landed at $3.03 billion, while its outlook for the third quarter came in at $4.40 billion to $4.80 billion, with adjusted earnings projected at $12 to $14 a share. 3
Riding a squeeze in supply and booming data-center orders, the company isn’t shy about its strategy. “Customers prefer supply over price,” CEO David Goeckeler told Reuters. Sandisk just locked in a flash supply deal with Japan’s Kioxia, pushing the contract out to 2034—five years past the original 2029 end date. 4
Analysts are chalking up the surge to a memory-cycle upswing, pushed higher by AI expansion. Morgan Stanley flagged Sandisk’s earnings as outperforming the usual trend, with potential for that momentum to last over a year if AI appetite continues. Following the forecast, no fewer than five brokerages bumped their price targets. 5
Retail money has also played a role. Steve Sosnick, chief strategist at Interactive Brokers, flagged Sandisk’s appearance near the top of the firm’s most active list as “more than simply a coincidence.” 6
Last year, Sandisk split off from Western Digital and now trades independently on Nasdaq as SNDK, the company said. 7
Still, the setup isn’t one-directional. Should flash supply ease up sooner than the market’s counting on, or if AI data-center demand starts to taper off, that pricing edge can evaporate in a hurry. And with the stock already bid up thanks to big guidance, a sharp reversal can play out just as quickly.
All eyes pivot to Wednesday at 2 p.m. ET, when the Fed’s Jan. 27-28 meeting minutes drop—a scheduled release that tends to shake up rate expectations, and with them, traders’ appetite for AI-linked risk. 8
