SanDisk (SNDK) shares fell 15.95% to close at $584.55 on February 4, 2026. This decline occurred during a broader technology sector rout that saw the Nasdaq Composite drop over 2%. The selloff followed the release of Anthropic's new AI automation tool, an event analysts termed a "SaaSpocalypse." Major software and information firms lost more than $285 billion in market value during the session. Investors engaged in profit-taking, rotating out of high-growth tech stocks into cyclical and value assets.
SanDisk’s business fundamentals remain strong despite the market volatility. The company reported Q2 revenue of $3.03 billion, a 61% increase year-over-year. Adjusted gross margins rose to 51.1% from 29.9% in the prior quarter. Management projects Q3 revenue between $4.4 billion and $4.8 billion. The company expects adjusted gross margins of 65% to 67% for the upcoming quarter. Projected earnings per share range from $12 to $14. AI-related NAND flash demand continues to drive this earnings acceleration.