24/7 Wall Street
16 Oct 2026, 16:45 UTC · 1h ago
Sandisk Just Dipped Below $1400 Which Means a Lot to Certain Investors
Impact · against what's priced in
The entry of China's CXMT into next-generation memory chips creates a concrete threat to the high gross margins currently embedded in Sandisk's valuation. While record guidance and revenue floors are positive, they are already assumed by the market and do not offset the new structural risk to pricing power.
- SNDK−0.60
Challenges what's priced in
- The price assumes
Sustained 84.6% gross margins via NBM pricing power
The price currently assumes record 84.6% gross margins, but CXMT's move into next-gen chips directly threatens this, especially since two-thirds of recent sequential growth was driven by pricing rather than volume.
What SNDK's price assumes · Sep 11
