Why Sandisk Stock Crashed on Monday

Sandisk stock dropped 11.7% on Monday following the massive IPO of Chinese DRAM chipmaker CXMT, which debuted on the Shanghai Stock Exchange with a $487 billion market cap and surged 466% on its first day. While Sandisk specializes in NAND flash memory rather than DRAM, investors fear China may soon enter the NAND market, threatening Sandisk's 70% operating profit margins.