Sandisk, Micron, and SK Hynix Slide 3% as NVIDIA Shake-Up Hits Memory Stocks
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Memory stocks are giving back ground as a leadership shock at the AI chip industry’s leader spreads through its supply chain. Sandisk (NASDAQ:SNDK | SNDK Price Prediction) stock is at $950.98, down 3% in morning trading. The NAND flash specialist has ridden the AI data center expansion, which leaves Sandisk exposed whenever sentiment toward AI hardware shifts.
The selling appears to be concentrated in memory/storage names. The NASDAQ 100 is up 0.3%, and technology ranks among the market’s leading sectors. Sandisk is moving in step with other large memory makers that supply the AI expansion.
NVIDIA’s CEO Exit Rattles AI Memory Stocks
NVIDIA (NASDAQ:NVDA) and its leadership change is weighing on AI hardware stocks after Jensen Huang resigned as the company’s chief executive. On November 12, traders were shaking off the CEO exit as the broader market turned positive. Suppliers of memory chips are slipping alongside AI hardware stocks.
Memory makers sit close to NVIDIA in the AI supply chain, since its accelerators depend on high-bandwidth memory (HBM) and fast data center storage. That link helps explain why Sandisk is slipping while technology stocks broadly gain, and profit taking in memory names may also be adding pressure.
Sandisk’s decline comes after November 11, when Evercore ISI defended the stock. Evercore pointed to stable NAND storage demand and maintained its $2,500 price target on Sandisk. Such research gives the bulls a reference point. One analyst call still carries limited weight against a shock at the AI industry’s biggest name.
Micron and SK Hynix Slip Alongside Sandisk
Micron Technology (NASDAQ:MU) stock is trading at $789.90, down 3%, similar to the decline in Sandisk stock. Beyond NAND, Micron sells dynamic random-access memory (DRAM) and HBM, giving the company more products tied to AI accelerators than a storage-only supplier has.
Meanwhile, SK Hynix (NASDAQ:SKHY) stock is at $137.99, also down 3%. The Korean chipmaker’s American Depositary Shares trade on the Nasdaq exchange, giving U.S. buyers direct access to a major HBM producer.
Sandisk’s Pure NAND Model Stands Apart
As a pure-play NAND flash supplier, Sandisk was spun off from Western Digital (NASDAQ:WDC) as an independent public company. Enterprise SSDs for AI infrastructure are its fastest-growing market. Edge devices form its largest end market, while retail storage rounds out the lineup. Flash wafers come from Flash Ventures, Sandisk’s manufacturing joint venture with Kioxia.
Micron runs a broader, vertically integrated model spanning DRAM, NAND, NOR flash and HBM, built on advanced process technology. Multi-year Strategic Customer Agreements are designed to make Micron’s demand more durable, while Sandisk uses long-term contracts with customer prepayments and deposits.
High-bandwidth memory is SK Hynix’s core strength, and the company is the leading supplier for AI accelerators, including NVIDIA’s, while reporting in Korean won adds a currency layer for U.S. buyers of SK Hynix’s American Depositary Shares.
Micron’s Low Multiple Draws Value Seekers
Micron trades at a trailing price-to-earnings (P/E) ratio of 10x and a forward P/E of 4x. Those are low multiples for a company at the center of an AI memory boom, and they may appeal to value-focused shareholders.
A very low forward P/E can carry a warning, too. Memory is a cyclical business, and a depressed multiple may signal that the market doubts Micron’s peak earnings will last. The company’s next earnings report could put that skepticism to the test.
What Comes Next for Sandisk and the Memory Trade
Sandisk’s next test is whether AI data center demand for enterprise SSDs holds firm while NVIDIA works through its leadership change. The bulls can point to the stable NAND demand Evercore ISI highlighted and to the company’s fast-growing data center business.
The bears see Sandisk as a stock that could stay volatile if AI spending plans face fresh scrutiny. SK Hynix and Micron face the same question, since all three companies lean on heavy AI infrastructure spending. Investors may want to be cautious while NVIDIA’s leadership transition resolves.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
