TradingKey - SanDisk's stock price has plunged 15% in the last 5 days and could fall further, potentially testing the key $1,000 round-number mark again under extreme scenarios.
On October 16 Eastern Time, SanDisk (SNDK) continued its relentless decline, falling more than 2% in pre-market trading to temporarily report at $1,359.48. Over the past five trading days, SanDisk's stock has dropped a cumulative 15%, hitting a low of $1,276.
At the end of September, SanDisk's stock price touched $1,900, attracting a large concentration of leveraged long positions chasing highs in the derivatives market. Lacking further positive catalysts, investors began taking profits or unwinding positions, triggering a pullback in the stock price once it broke below key technical support at $1,600.
In early October, market rumors surfaced that China's ChangXin Memory Technologies (CXMT) had made progress in next-generation memory architecture. Although this does not impact SNDK's Enterprise SSD monopoly in the short term, Wall Street has begun scrutinizing long-term pressures on the 2027 global NAND/DRAM supply-demand balance and average selling prices (ASPs), causing SK Hynix (SKHY) to plunge over 3%, while Micron (MU) and Western Digital (WDC) dropped alongside SanDisk.
In mid-October, the U.S. reported September CPI rising to 3.7% year-over-year, while monthly PPI surged to +1.3% (6.3% year-over-year). Elevated inflation data pushed up U.S. Treasury yields, effectively ruling out any room for short-term back-to-back rate cuts by the Federal Reserve (Fed) and boosting rate-hike expectations. Against the backdrop of high interest rates weighing on high-P/E assets, high-beta memory and semiconductor stocks were the first to face concentrated institutional deleveraging sell-offs, pushing SanDisk's stock price lower.
Currently, SanDisk's 200-day simple moving average (200-day SMA) sits near $1,199. The previous session's intraday low of $1,276 successfully triggered the first wave of dip-buying. As long as the broader U.S. market does not suffer a systemic collapse, strong support will exist above $1,200.
SanDisk stock price chart, Source: TradingView
In the event of an unexpected development—such as a major downside surprise in Q3 earnings guidance on October 29 or a macroeconomic liquidity crisis—SanDisk's stock price could break below $1,200. In that scenario, strict risk control must be executed to guard against a major pullback testing the $1,000 level, which served as the structural launchpad for SNDK's major range breakout in April this year.