Why Sandisk Stock Just Dropped

Sandisk stock fell 4% Monday despite Jefferies doubling its price target to $3,000 on Friday. The decline was triggered by reports that Apple is seeking permission to buy memory chips from Chinese supplier CXMT instead of Micron and Sandisk. While CXMT primarily supplies DRAM rather than NAND flash, investors worry Chinese competitors could threaten Sandisk's market share. However, analysts note that with memory supply deficits expected through 2027-2028 and long-term supply deals being locked in, the threat may be overstated.