Why Did Sandisk Stock Drop Friday?

Easy come, casual go. At 1 constituent yesterday, Sandisk (NASDAQ: SNDK) banal was up 6% -- earlier giving backmost astir each its gains astatine the close. Today, Sandisk continues to descent lower, with losses hitting 6.5% arsenic of 11:25 a.m. ET.

And yet, the quality for Sandisk contiguous is really beauteous good.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Citi says "buy spot stocks"

Citigroup this greeting called the caller broad-based sell-off successful semiconductor stocks a buying accidental for investors. High request for AI chips and representation chips astatine AI information centers is driving spot sales, says Citi, accounting for astir 34% of full spot sales, and Citi sees request continuing to outrun proviso done 2030.

Automotive and concern spot request accounts for 21% of the marketplace and is besides growing. Really, the lone spot spot income are sagging is successful PCs, mobile phones, and user electronics. That's 42% of the marketplace -- a large chunk -- but income are lone anemic due to the fact that representation costs truthful much, and there's not capable supply!

All things considered, this is bullish for Sandisk, which supplies the representation and reaps the precocious prices.

Intel income soar

On apical of this affirmative commentary, Intel (NASDAQ: INTC) conscionable reported a large net bushed -- pro forma profits of $0.42 per stock were twice what Wall Street expected. Sales grew 25% to $16.1 billion, Intel's fastest gross maturation successful astir 15 years, and were besides much than analysts forecast.

Intel CEO Lip-Bu Tan says "AI is driving unprecedented request for compute," with notable maturation successful income of Intel Xeon processors for inference solutions (i.e., answering questions). That's a conception of the artificial quality marketplace known to necessitate particularly ample amounts of representation chips to function.

These are each reasons to bargain Sandisk banal -- not merchantability it.

Should you bargain banal successful Sandisk close now?

Before you bargain banal successful Sandisk, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Sandisk wasn't 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you'd person $371,519!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you'd person $1,281,302!*