SanDisk Corp. shares dropped between 8% and 9% during early trading on May 12, 2026.
The sell-off followed a proposal from a South Korean presidential aide to tax AI company profits. Investors worry that other nations may adopt similar policies to target AI profitability.
The stock had previously climbed more than 550% since the start of the year. Technical indicators such as the Relative Strength Index (RSI) suggested the stock was overbought.
The decline impacted the entire memory sector, with SanDisk leading the downward movement.