SanDisk stock rebounded 3.13% in premarket trading on Wednesday after tumbling 11% on Tuesday following a 10% crash in South Korea’s KOSPI index that dragged memory chip stocks globally lower. The memory specialist bounced back as investors awaited Micron Technology’s fiscal third-quarter earnings report, widely viewed as a key catalyst for the memory sector.
The selloff that rattled SanDisk and peer memory makers originated in Asia on Tuesday morning, when South Korea’s Kospi fell 10% from a record high, with memory giants SK Hynix and Samsung Electronics each sliding over 12%, according to 24/7 Wall St. The contagion spread immediately to U.S. memory names that had posted triple-digit gains on AI-driven data-center demand, with Micron Technology dropping 10% and Western Digital sliding 10% alongside SanDisk’s 11% plunge.
The Roundhill Memory ETF (DRAM), which holds SK Hynix, Samsung, Micron, and other memory plays, crashed 14% on Tuesday, amplifying the selloff across the entire memory complex. The move appeared to reflect profit-taking rather than fundamental deterioration, as SanDisk stock had surged 858% year to date, Micron was up 325%, and Western Digital had climbed 326% before the Tuesday decline, according to 24/7 Wall St.
Fundamentals Remain Solid Despite the Swoon
Despite the sharp reversal, underlying business conditions remained robust. SanDisk’s most recent quarterly report showed revenue of $5.95 billion against a $4.73 billion consensus, with datacenter revenue surging 645% year-over-year and gross margin expanding to 78%, according to 24/7 Wall St. Micron’s last report showed revenue of $23.86 billion with gross margin at 74%, and the company guided Q3 FY2026 revenue to $33.5 billion plus or minus $750 million.
Micron’s earnings report on Wednesday after market close became the focal point for sentiment recovery. Options markets priced in an implied move of roughly 14% in either direction following the report, and Wall Street estimates projected Micron to report fiscal third-quarter earnings of $20.76 per share on revenue of $35.75 billion, according to Benzinga. The report arrived as the next defined catalyst to set the tone for the entire memory sector and test whether the Tuesday decline marked a temporary pullback or the start of a deeper correction.
The debate over whether memory stocks had entered a genuine correction or were simply consolidating after an extreme rally played out across social media. Reddit sentiment on Micron slipped from 81 (Very Bullish) early Monday to 56 (Neutral) by Tuesday morning, while SanDisk’s sentiment fell from 72 (bullish) to 45 (neutral), reflecting broad de-risking across high-beta AI plays, according to 24/7 Wall St. SanDisk’s stock held key technical support at $1,820.90, the 20-day simple moving average, remaining well above the 50-day SMA at $1,450.54 and 200-day SMA at $633.87, according to Benzinga.
Sources
- 24/7 Wall St. — SanDisk plunge, Korean market crash, memory ETF decline, year-to-date gains, earnings data
- Benzinga — SanDisk rebound, premarket price, technical support levels, Micron earnings preview and implied move
