Why Sandisk Stock Dropped Today

Just 1 time aft Morgan Stanley helped boost Sandisk (NASDAQ: SNDK) banal astir 7% successful a day, shares of the representation specializer are giving backmost immoderate gains connected Thursday -- falling 1.7% done 11 a.m. ET.

You tin blasted Broadcom (NASDAQ: AVGO) for that.

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How Broadcom Q2 net sank Sandisk

It's a shame, really. As precocious arsenic yesterday, Morgan Stanley was telling investors "there's nary speedy hole to the representation shortage," that DRAM prices soared 40% successful Q2, and are acceptable for different 15% emergence successful Q3. This would beryllium bully quality for Sandisk, which, portion it doesn't marque DRAM, does manufacture different forms of representation chips -- successful particular, "high-bandwidth flash" representation that's besides utile successful AI information centers.

Recognizing this, MS boosted some its net estimates and its terms people connected Sandisk -- up 59% to $1,100 per share. But it was not to last.

Reporting net for its fiscal Q2 2026 past night, Broadcom bushed expectations connected some income and earnings, reporting nett of $2.44 per stock connected $22.2 cardinal successful sales. Management besides bushed forecasts for Q3 guidance, predicting income of $29.4 cardinal versus Wall Street's forecast of $28.5 billion.

This quality sparked a 15% sell-off successful Broadcom banal this morning.

What's adjacent for Sandisk?

Does this marque sense? Maybe, a little. Some analysts person noted that Broadcom's guidance connected AI spot sales, successful particular, looked a small weak. Broadcom CEO Hock Tan said AI spot income successful Q3 mightiness bring successful $16 billion, whereas Wall Street wants $17.2 billion.

Still, Broadcom grew AI spot gross 143% successful Q2, and $16 cardinal successful Q3 would enactment retired to amended than 200% maturation -- not arsenic overmuch arsenic analysts hoped, but inactive accelerating. To me, that inactive sounds similar bully quality for Sandisk.

Should you bargain banal successful Sandisk close now?

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