SanDisk shares fall on inflation data and China chip threat

SanDisk Corporation shares dropped 4.6% in morning trading Friday, continuing a multi-session decline following a stronger-than-expected September Consumer Price Index report.

The Labor Department's inflation data showed headline CPI rose 3.7% year-over-year, above the 3.6% forecast, while core CPI reached 2.6% versus the 2.5% estimate. The figures have strengthened expectations that the Federal Reserve will maintain elevated borrowing costs for an extended period, potentially slowing AI data-center expansion that has supported SanDisk's performance this year.

The stock also faces pressure from competitive developments in China. ChangXin Memory Technologies recently announced progress in a next-generation DRAM chip architecture designed to deliver higher memory density in a smaller form factor. The disclosure has affected investor sentiment across the global memory sector due to concerns about future capacity expansion and pricing pressure in NAND and DRAM markets.

SanDisk shares have climbed roughly 575% in 2026. With fiscal Q1 2027 earnings scheduled for October 29, some investors holding substantial gains are reducing positions ahead of the report. Analyst consensus estimates call for earnings per share of $46.22 and revenue of $10.64 billion for the quarter.

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