SanDisk (SNDK) shares declined 5% on Tuesday, February 24. This drop followed an announcement from Citron Research regarding a new short position in the company.
Citron Research claims the market overvalues SanDisk by comparing its commodity-based NAND products to NVIDIA’s specialized AI chips. The activist short-seller cited historical cyclicality in the memory market as a significant concern. The firm also highlighted intensifying competition from Samsung as a primary risk factor.
The short call challenges SanDisk’s strong performance throughout 2026. Shares previously surged on high demand for flash memory used in artificial intelligence infrastructure. The company also recently delivered a blowout fiscal second-quarter earnings report.
Investors are now focusing on upcoming commentary from SanDisk management. Executives will present at the Bernstein What's Next in Tech? TMT forum on the evening of February 25.