Key Takeaways
- SNDK shares declined approximately 9.5% Friday following Thursday’s impressive 22% rally triggered by Micron’s strong quarterly results
- News of OpenAI potentially postponing its public offering until 2027 rattled investors concerned about memory sector spending
- Storage sector peers Western Digital and Seagate tumbled 14% and 10% respectively; Micron retreated 5.6%
- Citi’s Asiya Merchant maintained her Buy recommendation while lifting her target price to $2,500 from $2,025
- Even after Friday’s decline, SNDK remains higher by approximately 790% in 2025 and over 4,300% across the trailing twelve months
Sandisk shares experienced significant volatility Friday. Following Thursday’s remarkable 22% advance fueled by Micron’s exceptional quarterly performance, SNDK surrendered a substantial portion of those gains — declining approximately 9.5% to close near $2,113 — as market participants digested two negative developments.
The initial factor was straightforward profit-taking activity. A 22% single-session jump typically attracts sellers at the following open. This reaction was largely anticipated.
The second development proved more concerning. According to The New York Times, OpenAI is now considering delaying its initial public offering from 2026 to 2027. The rationale? CEO Sam Altman reportedly aims to achieve a $1 trillion valuation, and his advisors have indicated that additional time could make this target achievable. Proceeding with an earlier timeline risks undervaluing the company.
This development poses challenges for Sandisk. OpenAI’s recent pre-IPO financing round established an $852 billion valuation and secured $122 billion in fresh capital. Market participants expected these funds to flow toward hyperscale cloud providers, who would subsequently allocate significant resources toward processors and memory infrastructure for their facilities. A successful public offering would have generated additional capital deployment.
Delaying the IPO until 2027 effectively postpones this anticipated infrastructure spending surge.
NAND Market Fundamentals Remain Robust
Despite Friday’s selloff, Wall Street analysts aren’t abandoning their bullish stance. Citi analyst Asiya Merchant reaffirmed her Buy rating on SNDK while increasing her price objective to $2,500 from $2,025.
Merchant’s research highlights Micron’s quarterly results as confirmation that NAND supply will remain constrained throughout the coming year. Healthy NAND consumption and favorable pricing dynamics continue to support Sandisk’s outlook, according to her analysis.
The wider memory industry experienced similar pressure Friday. Western Digital declined 14%, Seagate retreated 10%, and Micron surrendered 5.6%.
Wall Street’s Current Perspective
Among 29 research firms monitored by FactSet, Sandisk maintains an average Overweight consensus rating. The distribution includes: 18 Buy recommendations, five Overweight ratings, five Hold ratings, and only one Sell.
This represents overwhelmingly positive sentiment.
Technical metrics suggest the stock may have entered overbought conditions, though analysts appear unconcerned by this development currently.
Agentic AI applications are fueling significant demand growth. These advanced systems demand substantial memory capacity, positioning Sandisk directly within this expanding market opportunity.
Despite Friday’s reversal, Sandisk has still appreciated roughly 790% during 2025. Measured across the past twelve months, shares have skyrocketed more than 4,300%.
The trading week concluded negatively — SNDK finished approximately 3.3% lower over the five-day period despite Thursday’s explosive 22% advance.
Citi’s $2,500 price objective represents the latest analyst forecast revision on the stock.
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