SanDisk shares drop amid chip sector selloff

SanDisk shares fell 14.3% in morning trading Thursday to $889 as selling continued in the memory chip sector for a second day. The decline followed the Democratic Party's victory in both chambers of Congress during Tuesday's midterm elections.

Investors expressed concern about potential stricter oversight of AI infrastructure and data center expansion under the new congressional leadership. These sectors represent the main demand source for SanDisk's NAND flash memory products.

The company reported $11.03 billion in quarterly revenue last week and delivered its sixth consecutive earnings beat.

Fox Advisors downgraded SanDisk from Overweight to Equal Weight on November 2, citing caution about the stock's near-term direction. Wells Fargo also reduced its price target for the company.

Chief Legal Officer Bernard Shek sold 600 shares worth approximately $695,000 on November 2 through a pre-arranged Rule 10b5-1 plan. The transaction occurred before the stock's decline this week.

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