SanDisk’s Plunge Meets a Wall of Institutional Buying as Analysts Split on AI Demand

SanDisk finds itself at the center of a sharp disconnect that has become the defining story of this summer for chip stocks. While the share price has cratered — touching a new 52-week low just days ago — a handful of large institutional investors have stepped in aggressively, betting that the sell-off has gone too far.

The stock bottomed out at €1,130 on Friday before recovering slightly to trade around €1,220. That leaves SanDisk roughly 41% below its June high of €2,060. The slide has been brutal: in the past seven trading sessions alone, the equity lost 27%. Annualized volatility sits at 142.73%, a figure that underscores just how violently the market is swinging on this name.

Wealthfront Advisers LLC was the most conspicuous buyer, boosting its SanDisk position by a staggering 1,100.2% according to a July 17 filing. Twin Capital Management also appeared as a new entrant, acquiring 1,418 shares. Both moves suggest that these funds view the recent correction as an opportunity to build exposure at distressed levels. The 14-day relative strength index now stands at 39.5, approaching oversold territory and adding a technical tailwind to the bullish thesis.

Yet the bears have ammunition of their own. Argus Research initiated coverage on Wednesday with a cautious “Hold” rating, warning that any slowdown in AI-driven demand for NAND memory chips would hit both pricing and SanDisk’s valuation hard. The stock reacted with an immediate 7% decline on the day. The broader sell-off has also dragged down peers: Micron, SK Hynix, and Western Digital all lost ground as the Philadelphia Semiconductor Index retreated from its highs.

Should investors sell immediately? Or is it worth buying SANDISK?

External pressures are piling up. Taiwan Semiconductor Manufacturing has earmarked more than $60 billion in capital expenditure for 2026 — a figure that signals strong end-demand but also fans fears about free cash flow across the entire chip value chain. Meanwhile, Chinese memory maker ChangXin Memory Technologies (CXMT) is preparing an initial public offering in Shanghai that could raise between $8.6 billion and $10 billion. Analysts see the listing as a sign of intensifying competition in the NAND and DRAM markets, precisely where SanDisk enjoyed strong pricing power in the first half of the year.

Despite the bearish headlines, Wall Street’s official targets remain far above the current share price. Evercore ISI recently lifted its price objective to $3,100, citing the durability of what it calls the “new memory paradigm” fueled by AI data center demand. Goldman Sachs is more conservative but still bullish at $2,200, pointing to ongoing supply tightness in NAND as a support for prices. The gap between these projections and the stock’s actual level is among the widest in the sector.

The next major test arrives on August 5, when SanDisk reports fiscal fourth-quarter results. Investors will scrutinize whether management reaffirms its guidance of $30 to $33 in earnings per share for the full year. A week later, on August 13, the company hosts an Investor Day that could provide deeper insight into the trajectory of demand for NAND flash in AI workloads.

SanDisk has not been idle operationally. It recently released for testing its BiCS10 1Tb TLC 3D NAND Flash Memory, a product aimed at data-intensive applications. The move underscores that the company’s engineering pipeline remains aligned with the AI boom — even as its stock price tells a more nervous story.