SanDisk stock crashed 54% in July, turning the memory-chip maker into the most oversold stock in 15 months as a broader semiconductor selloff gripped the sector on fears that artificial intelligence spending may be unsustainable. The stock closed at $1,015.89 on July 29, according to MarketBeat, down sharply from its June peak after hitting a relative strength index (RSI) of 99.22—the most overbought reading in history. The 14-day RSI now sits around 29 to 32, signaling extreme oversold conditions, according to Investing.com and GuruFocus.
The July rout reversed a stunning year-to-date rally in which SanDisk surged more than 2,000%, making it one of the S&P 500’s top performers. The reversal reflects a violent unwind of AI-related trades as investors grew skeptical about the sustainability of hyperscaler capital expenditures on data center infrastructure. According to Forbes, hyperscalers’ 67% jump in AI capital spending to $650 billion has sparked concern that demand growth may not justify the valuations, prompting a rotation out of memory and chip stocks into software names.
The broader semiconductor complex has bled more than $1 trillion in market value since early June, according to Reuters and other outlets. The Philadelphia Semiconductor Index shed more than 11% since its June record high, according to Reuters, entering bear-market territory. Memory stocks including Micron, Western Digital, and Seagate all faced double-digit losses through July, with memory chip competition intensifying as the sector grapples with oversupply concerns.
Fears intensified after South Korea’s KOSPI index closed down nearly 11% on July 28, hitting its eighth circuit breaker of 2026, according to Fortune. The selloff was fueled by concerns about the durability of the AI boom and cheaper competition from Chinese chipmakers, according to the New York Times and Financial Times. The New York Times reported that investors worry the recent surge in demand for AI chips is unsustainable given ballooning infrastructure spending by major technology companies.
Despite the July crash, major Wall Street analysts have maintained bullish outlooks on SanDisk’s longer-term prospects. Evercore ISI analyst Amit Daryanani raised his SanDisk price target to $3,100 from $1,400 on July 13, citing underappreciated earnings durability, according to Barron’s and TheStreet. Morgan Stanley raised its target to $1,750 from $1,100 in late July, per Forbes. The consensus 12-month price target across 26 analysts sits at $1,811.38, representing 78.3% upside from current levels, according to MarketBeat—a signal that Wall Street views the July decline as a potential buying opportunity for long-term investors.
SanDisk’s extreme oversold reading mirrors a broader pattern in memory cycles. The stock’s June overbought extreme—an RSI above 99—was historic. Earlier memory-stock crashes, such as the 2024 inventory correction, saw sharp recoveries once oversold conditions reversed and data center demand stabilized. The current oversold reading suggests the market may be pricing in worst-case scenarios for AI demand, leaving room for a rebound if earnings guidance holds and AI capex stabilizes.
Sources
- MarketBeat — SanDisk consensus price target and current stock price
- Investing.com — Current 14-day RSI reading
- GuruFocus — RSI 32.76 as of July 30, 2026
- Yahoo Finance — SanDisk down over 50% in July; broader semiconductor selling pressure
- Forbes — Hyperscaler AI capex jump to $650 billion and valuation concerns; Morgan Stanley price target
- Barron’s — Evercore ISI analyst Amit Daryanani price target of $3,100; historical RSI readings
- TheStreet — Goldman Sachs and Evercore ISI price target raises on July 13-14
- Reuters — Semiconductor sector lost over $1 trillion; Philadelphia Semiconductor Index down 11%
- Financial Times — Memory and storage makers down more than 9%; cheaper competition from China
- Fortune — South Korea’s KOSPI down 11% on July 28; eighth circuit breaker of 2026
- New York Times — Ballooning AI spending by tech companies; threat of cheaper competitors
- BBC — Investors worry recent AI chip demand boom is unsustainable
