SanDisk Stock Price Drop: SNDK Tests the $1,000 Floor
The semiconductor industry is facing a time of reckoning as concerns about overspending are raging across Wall Street. The recent ignition came from Alphabet’s Q2 earnings call, as the company announced it would increase capex on AI from $180 billion to $205 billion, and Google stock (NASDAQ: GOOG) slumped despite reporting robust revenues. SanDisk stock (NASDAQ: SNDK) experienced a major crash on Tuesday, with prices falling to a low of $1,050. It ended the day’s trade at $1,096, after plummeting 14.25%.
The crash was sharp and fast and has shocked the broader stock market. Its competitors, Micron stock (NASDAQ: MU), fell more than 8.85%, and SK Hynix (NASDAQ: SKHY) plunged 8.98%. Traders are now fearful of taking an entry position in semiconductor stocks, as the correction is steep and is capable of erasing the invested amount. On the heels of the recent slump, SanDisk stock has tested the $1,000 floor and stands in risky territory. Another dip could lead to a psychological bearish thesis, eroding confidence in SNDK.
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