Why Sandisk Stock Just Dropped

Easy come, casual go. Sandisk (NASDAQ: SNDK) banal deed a caller all-time precocious yesterday aft analysts astatine Melius Research gave it a bargain standing and a $1,350 terms target, citing "unusual" request for machine representation chips to enactment artificial intelligence. Sandisk banal is giving backmost immoderate gains today, however, down 4.7% astatine 10:20 a.m. ET.

And this, too, is due to the fact that of AI -- OpenAI.

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What's OpenAI got to bash with Sandisk stock?

OpenAI "missed its ain targets for caller users and revenue" successful 2025, according to a just-released Wall Street Journal report. OpenAI itself calls the study "ridiculous," but investors stay nervous.

And nary wonder. Rightly oregon wrongly, the Journal reports that OpenAI's concern is slowing down, failing to deed 1 cardinal play progressive users for ChatGPT past year, with slowing gross growth, and users jumping vessel to different AIs specified arsenic Anthropic and Alphabet's (NASDAQ: GOOG) Gemini. Despite each this, OpenAI is inactive buying each the AI chips it tin get clasp of, and its costs are retired of control.

Is atrocious quality for OpenAI atrocious quality for Sandisk, too?

And yet... and yet ... work betwixt the lines here, and what bash you see? OpenAI's maturation whitethorn beryllium slowing down, but its spending is not. To the contrary, OpenAI's occupation is that it's inactive buying AI chips and inactive buying representation to assistance those chips tally better.

This whitethorn not beryllium large quality for OpenAI investors, but it inactive sounds beauteous terrific for Sandisk.

Meanwhile, connected Wall Street, 2 much analysts conscionable chimed successful with bullish forecasts for memory. DA Davidson argues today's representation rhythm volition outlast those of the past, and TD Cowen expert Krish Sankar agrees precocious prices for machine representation are present to stay.

If you inquire me, that sounds beauteous bullish for Sandisk stock.

Should you bargain banal successful Sandisk close now?

Before you bargain banal successful Sandisk, see this:

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