Sandisk Corporation (NASDAQ:SNDK) stock fell more than 2% in Wednesday’s premarket session as investors took profits following a strong multi-month rally. The decline came even as the broader market pointed higher, with Nasdaq futures rising 0.48% and S&P 500 futures gaining 0.17%.

Technical Analysis

Sandisk remains in a consolidation phase after reaching a swing high in June. The stock is trading below its 20-day simple moving average of $1,960.85 but remains above its 50-day simple moving average of $1,713.67. That suggests short-term momentum has weakened, although the intermediate-term uptrend remains intact.

The relative strength index stands at 48.23, indicating neutral momentum. The reading suggests the stock is neither overbought nor oversold after cooling from June’s elevated levels.

The longer-term trend remains positive. Sandisk continues to trade well above both its 100-day simple moving average of $1,232.62 and its 200-day simple moving average of $761.35. In addition, the 50-day moving average remains above the 200-day moving average, a bullish long-term signal.

The next resistance level is near $1,861, close to the 20-day exponential moving average of $1,851.11. Initial support sits near $1,514.50, while the 100-day moving average provides a stronger support level if selling pressure increases.

Analysts Remain Bullish

Wall Street remains increasingly bullish on the memory-chip maker.

Bank of America analyst Wamsi Mohan reiterated a Buy rating on July 1 and raised his price forecast to $2,500 from $2,100. He said tight NAND supply and demand conditions could persist through 2027, with pricing expected to remain resilient through at least the middle of 2027.

Evercore ISI maintained its Outperform rating and raised its price forecast to $3,100 from $1,400, citing the durability of the company’s earnings and free cash flow over the next several years. The firm expects NAND pricing to remain supported as supply-demand imbalances persist through 2026 and 2027.

Citigroup reiterated its $2,500 price forecast on June 25, citing sustained AI-driven demand for memory products. Bernstein also lifted its price forecast to $3,000 on June 30, pointing to the strength of Sanadisk’s long-term enterprise SSD supply agreements.

Earnings Outlook

Sandisk is scheduled to report quarterly results on Aug. 5.

Wall Street expects earnings of $33.38 per share on revenue of $8.24 billion, compared with earnings of 29 cents per share and revenue of $1.90 billion a year earlier.

The stock trades at about 60.1 times earnings and carries a consensus Buy rating.

ETF Exposure

Sandisk is a significant holding in several exchange-traded funds, including the Roundhill Memory ETF (NASDAQ:DRAM), the Invesco S&P 500 Pure Growth ETF (NYSE:RPG) and the Invesco Dorsey Wright Technology Momentum ETF (NASDAQ:PTF).

Large fund inflows or outflows in these ETFs can create additional buying or selling pressure for the stock.

Price Action

SNDK Stock Price Activity: SanDisk shares were down 2.39% at $1715.73 during premarket trading on Wednesday, according to Benzinga Pro data.

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