One of America's premier memory makers and semiconductor companies, SanDisk Corp. seems to be slipping through the cracks on the Wall Street.
Futures tied to SanDisk point to a weak start on Wednesday as they trade nearly 6% lower at $1,526.98, extending its rout from the previous session where it sank over 14% intraday.
The company, which specialises in manufacturing and supplying NAND flash memory devices (used for long-term storage) and related solutions, was dumped heavily on the NYSE after Korean peer Samsung failed to enthuse traders with its earnings report.
Despite Samsung estimating a nearly 56% QoQ jump in its operating profit, concerns related to AI boom being able to justify capex allocated to data centre buildouts and sky-high valuations bothered traders.
Samsung's stock on the KOSPI index continued its fall on Wednesday and settled 6.25% lower at 277,500 South Korean won ($183.76). AI-led tech giants like Nvidia Corp.'s demand for storage chips has also put memory makers like Sandisk and Samsung in a pickle as their data centres eat up a large chunk of their RAM, HBM, and SSD supply.
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Going ahead, these data centres are expected to consume more than 70% of the high-end memory chips manufacturers produce in 2026, according to TrendForce. As a result, Storage device Cos have also shifted their manufacturing strategy to one which panders more to the needs of the AI boom, creating a supercycle.
Seperately, growing south-eastern competition from firms like SK Hynix and Kioxia as they seek stage-time on world's largest financial arena — the New York Stock Exchange — looms like a dark cloud on the future growth of American players Sandisk and Micron.
Both SK Hynix, (the world's second-largest memory manufacturer, based in Korea) and Japan's Kioxia are planning their American Depositary Share listing. Of these, Kioxia poses a direct market share threat as it specialises in developing, manufacturing and supplying NAND flash memory devices.
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