Sandisk Stock Down 48% From June Highs but AI Demand Boom Makes It a Buy, Analysts Say

The Quick Take

• Sandisk's stock has fallen 48% from its all-time high set in June 2026, creating what analysts at Nasdaq News and The Motley Fool argue is a compelling buying opportunity as the underlying AI-driven business remains strong
• Sandisk's flash storage business is a direct beneficiary of massive AI infrastructure spending, with demand for NAND flash storage in data centres accelerating alongside AI model training and inference workloads
• The 48% share price decline despite fundamental business strength represents a valuation reset that long-term investors can use as an entry point, according to the bullish analyst thesis

Sandisk's stock has experienced a sharp correction from the record highs it set in June 2026, falling approximately 48% in a move that two separate investment analysis platforms — Nasdaq News and The Motley Fool — have independently assessed as a buying opportunity. The decline appears to be a valuation correction following an extended period of outperformance rather than a fundamental deterioration in Sandisk's business prospects. Sandisk, which completed its separation from Western Digital, is a pure-play NAND flash storage company with significant exposure to AI data centre infrastructure demand — a structural growth theme that remains firmly intact despite the stock's significant pullback from peak levels.

The bull case for Sandisk at current levels centres on the company's position in the AI infrastructure supply chain. NAND flash storage is a critical component in AI data centres, used for fast storage of training datasets, model weights and inference caches. As hyperscalers including Microsoft, Google, Amazon and Meta accelerate AI capex, demand for high-performance NAND storage in enterprise and data centre configurations is expected to grow significantly. Sandisk's technology roadmap in QLC NAND and high-capacity enterprise SSDs positions it to capture this demand. The 48% decline from peak creates a situation where investors can acquire AI infrastructure exposure at a substantially lower entry point than June buyers.

The key risk in the contrarian thesis is the cyclical nature of the NAND flash memory market, which has historically experienced significant pricing cycles driven by supply-demand imbalances. If AI capex growth moderates or if NAND supply additions from Samsung, SK Hynix and Micron outpace demand growth, Sandisk's near-term pricing power could face pressure. Key forward signals include Sandisk's next quarterly earnings update on NAND pricing and shipment volumes, hyperscaler AI capex guidance for H2 2026, and whether the broader technology sector rally sustains conditions for a Sandisk stock recovery from current depressed levels.

Synthesized from 2 sources.