Investing.com -- SanDisk shares fell more than 11% following warnings from competitor Kioxia that the surge in NAND flash memory prices may be ending, alongside weak Intel guidance and broader concerns about the AI trade.
Tokyo-based Kioxia, which competes with Samsung Electronics Co., SK Hynix Inc., and Micron Technology Inc., reported expectations for an operating profit of ¥2 trillion ($12.7 billion) in the current quarter.
The forecast fell short of analyst estimates of ¥2.35 trillion and indicated nearly flat quarter-on-quarter price increases.
Kioxia said its average selling price of NAND flash memory rose in the mid-20% range during the three months ending September, a sharp deceleration from the 70% increase recorded in the prior quarter.
The slowdown in price growth raised concerns across the memory chip sector, weighing on SanDisk shares.
Yesterday, the company blew past Wall Street expectations for its September quarter and forecast another surge in revenue, powered by relentless demand from major U.S. cloud providers expanding their AI infrastructure.
SanDisk posted September-quarter revenue of $11.03 billion and adjusted earnings per share of $49.51, easily topping its own upwardly revised guidance range of $10.3 billion to $10.8 billion in revenue and EPS of $44.00 to $46.00.
Revenue skyrocketed 378% year-over-year and climbed 23% from the previous quarter. Management attributed roughly 60% of the sequential revenue expansion to higher shipment volumes, with the remaining 40% driven by stronger pricing power.
Original Article
SanDisk stock tumbles as Kioxia warns on NAND price surge
Intel plummets over 28% as weak forecast overshadows earnings beat
Nasdaq slides over 2% as tech earnings deepen AI spending concerns
