Sandisk Corp. (NASDAQ:SNDK) stock fell nearly 6% in Monday premarket trading as investors pulled back from growth-focused technology stocks. Nasdaq futures dropped 1.78%, while S&P 500 futures fell 0.79%.
Sandisk’s decline comes amid a broader sell-off in memory and storage stocks. Micron Technology Inc. (NASDAQ:MU) fell about 5%, while Western Digital Corp. (NASDAQ:WDC) and Seagate Technology Holdings PLC (NASDAQ:STX) each dropped more than 4% in Monday premarket trading. SK hynix Inc. (NASDAQ:SKHY) also fell more than 7%.
The sector weakened as investors weighed calls to slow AI development against expectations for continued AI infrastructure spending.
Profit-taking also pressured recent winners. Nasdaq futures dropped 1.78%, while S&P 500 futures fell 0.79%.
The sell-off is pushing Sandisk toward key intermediate technical levels. However, its longer-term trend remains positive.
See More: Top Growth Stocks
Technical Analysis
Sandisk trades about 49.6% above its 200-day simple moving average of $1,033.67. Its 50-day SMA also remains above the 200-day SMA, signaling that the longer-term uptrend remains intact.
However, the near-term picture is weaker. The stock trades about 3.5% below its 20-day SMA of $1,602.13 and 0.6% below its 100-day SMA of $1,555.75.
The relative strength index stands at 52.52. That neutral reading suggests neither buyers nor sellers have a clear momentum advantage.
Resistance sits near $1,696.50. Meanwhile, support around $1,416.50 could become important if selling pressure increases.
Analyst Outlook
Analysts have a consensus Buy rating on Sandisk, with an average price forecast of $2,190.50.
Mizuho maintained an Outperform rating but lowered its price forecast to $1,875 on Aug. 25. RBC Capital raised its price forecast to $1,600 while maintaining a Sector Perform rating on Aug. 14. Wells Fargo also raised its price forecast to $1,550 and kept an Equal-Weight rating that day.
Benzinga Edge Rankings
Sandisk has a Benzinga Edge Momentum score of 99.9, reflecting its strong longer-term performance. However, its Value score is just 11.12.
The combination points to a momentum-driven stock. That makes the ability to hold key technical support increasingly important if the broader technology sell-off continues.
Price Action
SNDK Stock Price Activity: Sandisk shares were down 5.59% at $1542.06 during premarket trading on Monday, according to Benzinga Pro data.
Image via Shutterstock