- SanDisk shares fell 3% early but recovered to trade down 0.34% at $1,479.91.
- SanDisk and Kioxia plan over $31 billion investment in Japan by 2032, pending support.
- Investment supports expansion of Yokkaichi and Kitakami plants amid rising NAND demand.
SanDisk Corp shares recovered from a sharp early decline on Thursday as investors weighed the memory chipmaker's massive investment plans in Japan against a mixed near-term technical setup. SanDisk shares fell as much as 3% to $1,438.80 before recovering. The stock was down 0.34% at $1,479.91 as of 10:14 a.m. EDT.
The recovery comes after SanDisk and Kioxia Corporation announced plans for anticipated investments of more than $31 billion, or approximately 5 trillion yen, in Japan through 2032, contingent upon government support.
Kioxia Corporation and SanDisk Corporation said the planned investments will support continued expansion of infrastructure at their Yokkaichi and Kitakami plants, along with related infrastructure and technology. The companies said the investment programme is aligned with market trends and rising demand for NAND flash memory as artificial intelligence and data-driven applications expand.
The latest commitment builds on a long-standing partnership between the two companies. Kioxia and SanDisk said their collaboration has driven decades of NAND flash memory innovation and resulted in more than $50 billion, or approximately 9 trillion yen, of investment in Japan over the past 25 years.
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The companies expect the latest investment programme to further strengthen their partnership and support the development of memory technology for an increasingly AI-driven and data-centric world.
Should You Buy SanDisk Stock?
Investor sentiment towards SanDisk remains broadly positive. According to Bloomberg data, 27 analysts recommend buying the stock, while four have a hold rating. However, the technical picture is more mixed.
SanDisk remains firmly in a long-term uptrend, with the stock trading 52.9% above its 200-day simple moving average of $964.67. At the same time, the stock is 8.6% below its 50-day SMA of $1,613.96, indicating that its intermediate-term trend has cooled.
The 20-day SMA is also below the 50-day SMA, forming a bearish crossover that can typically signal consolidation or weakening short-term momentum.
For now, SanDisk's long-term AI and memory demand story remains supported by its planned investment with Kioxia, but the stock's near-term direction could depend on whether it can reclaim key moving-average levels.
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