SanDisk shares hit record high before sharp AI memory selloff

Shares of SanDisk Corporation surged to a record high this week before a sharp sector-wide selloff, highlighting the extreme volatility and investor enthusiasm surrounding companies tied to the artificial intelligence infrastructure boom.

The stock reached a 52-week peak of $1,600 during trading on Monday, May 11, capping a staggering year-to-date gain of over 550%. The rally was fueled by a wave of analyst upgrades following the company's strong fiscal third-quarter earnings report, released on April 30. The results showed earnings per share of $23.41, significantly exceeding consensus estimates, with revenue soaring 251% year-over-year to $5.95 billion.

Analysts pointed to explosive growth in the datacenter segment, which saw revenue increase by 233% sequentially, as cloud providers and corporate customers accelerate deployments of AI infrastructure. Company executives have positioned NAND flash memory as essential for expanding AI models, citing strong demand for high-performance enterprise solid-state drives. The company has also secured multiple long-term supply agreements with customers, with financial commitments exceeding $11 billion.

However, the momentum reversed...