SanDisk shares dropped 22.26% to $806.43 on November 5, with trading volume exceeding the 20-day average by three times. The company is now trading 66% below its June peak of $2,354. This decline follows a quarterly revenue report of $11.03 billion, which represented a 378% year-over-year increase, and data center sales growth of 61% to $4.80 billion.
The sell-off was triggered by political shifts in the US, including election results in Texas, Georgia, and Ohio, and calls from Representative Yassamin Ansari to pause AI development. The Philadelphia Semiconductor Index fell 12.3%, marking its worst session since March 2020. Across the broader US market, over $2 trillion in market capitalization was erased during early trading.
Hedge funds are currently unwinding AI-related positions established since 2025. According to Morgan Stanley, funds reduced overall exposure by 7.8%, the largest cut since 2016. Major memory manufacturers, including Samsung, SK Hynix, Micron, and SanDisk, have collectively lost over $700 billion in market value in less than two weeks.
Technical analysis shows SanDisk shares broke the support level of $942, with the Relative Strength Index falling to 25. While the stock saw a slight recovery to $860 in after-hours trading, analysts note that further price action depends on hedge fund positioning. Technology stocks still account for 23.5% of Goldman Sachs' global prime brokerage book.
