SanDisk Shares Fall as Memory Sector Faces DRAM Concerns

SanDisk shares fell 6% as memory and storage stocks declined after Chinese chipmaker ChangXin Memory Technologies reported progress on a denser DRAM design, raising concerns across the sector. Seagate Technology Holdings also dropped 4%, while broader memory funds moved lower.

According to market data cited by 247 Wall St., SanDisk traded at $1,484.21 in early action, Seagate traded at $753.21, and the Roundhill Memory ETF fell 4% to $54.64. The SPDR S&P 500 ETF Trust was largely unchanged at $778.75.

SanDisk had gained 524% year to date through the previous close, according to 247 Wall St., leaving the stock more exposed to a sentiment reversal. The Roundhill Memory ETF held SanDisk at a 4.7% weight and Seagate at a 4.5% weight as of May 11.

ChangXin Memory Technologies, a Chinese memory manufacturer that is not listed in the United States, said it had advanced work on a denser DRAM cell design and planned an artificial intelligence data center product later this year. The development affects DRAM, while SanDisk focuses on NAND flash storage.

SanDisk reported fiscal Q4 2026 revenue of $8.96 billion, up 371.6% year over year, according to 247 Wall St. The company recorded $5.43 billion from edge products and $2.98 billion from data centers.

SanDisk also guided fiscal Q1 2027 revenue to $10.3 billion to $10.8 billion after adjusted earnings per share reached $39.25 compared with a $33.28 consensus estimate, according to the report.

Seagate Technology Holdings leadership has emphasized differences between NAND flash and hard drives as the companies respond to shifting memory market conditions.

"NAND is a great technology," said Seagate Technology Holdings leadership.

Seagate Technology Holdings leadership also described NAND as serving specific storage needs separate from hard drives, highlighting different roles across storage products.

"Has many niches that hard drives are not in," said Seagate Technology Holdings leadership.

Seagate's business remains focused on hard disk drives used for mass-capacity storage in data centers, while SanDisk operates in NAND flash memory markets.

SanDisk management said customer demand remained stronger than available supply as the company monitored competition and pricing conditions.

"Demand from our customers is growing faster than our supply," said SanDisk management.

The company expects NAND output to remain allocated beyond calendar 2027, while investors continue watching flash contract pricing and whether new Chinese capacity reaches the NAND market.