SanDisk (ticker SNDK) saw its share price tumble roughly 12% over two consecutive trading days after reports surfaced that OpenAI is weighing extra financing options for its upcoming AI infrastructure projects. The decline sparked alarm among semiconductor investors, who quickly linked the news to broader market risk. Analysts note that the price dip coincided with heightened volatility in crypto‑related hardware demand, where memory chips power blockchain mining rigs.
Stock Reaction
During the two‑day slide, SanDisk’s price fell from around $1,800 to just under $1,580, underscoring the sensitivity of memory stocks to AI‑related headlines. Traders cited the OpenAI development as a catalyst that could reshape spending patterns for data‑center equipment, a sector that also supplies components for crypto mining farms. Despite the drop, the stock remained above its 200‑day moving average, suggesting that long‑term investors still view the price as attractive.
Analyst Outlook
Bernstein’s Mark Newman responded to the turbulence by lifting his price objective for SanDisk from $1,700 to $3,000, while maintaining an Outperform rating. Newman, who ranks in the top 1 % of analysts on TipRanks, argues that the market undervalues the memory sector’s structural shift toward fixed‑price, long‑term supply contracts. He contends that these contracts, which often include upfront payments and multi‑year terms, shield SanDisk from severe downside risk, even as the broader crypto and blockchain markets experience cyclical swings.
Market Implications
Newman’s bullish stance signals confidence that SanDisk’s revenue stream will stay resilient amid fluctuating demand from both AI and crypto mining applications. Investors are watching the evolving contract landscape, which could set a precedent for other memory manufacturers seeking stability in a volatile market. If the price target materializes, SanDisk could become a preferred play for those aiming to capture growth in the intersection of AI infrastructure and blockchain technology.