SanDisk Corp. [NASDAQ: SNDK] closed 6.17% lower on Tuesday, May 12, falling to $1,452.02 as a coordinated selloff swept through memory and semiconductor names amid a confluence of macro pressures that had nothing to do with the company’s own fundamentals.

Micron Technology [NASDAQ: MU] fell 3.61% and Western Digital [NASDAQ: WDC] dropped 5.25% in the same session, confirming that the weakness in SNDK was driven by sector-wide profit-taking rather than any company-specific deterioration.

Two macro catalysts converged to trigger the pullback across the chip space on Tuesday.

First, April CPI came in hotter than expected at 3.8% year-over-year, the highest reading in nearly three years, raising concerns about persistent inflation and reinforcing the market consensus that the Federal Reserve will hold interest rates steady through the end of 2026.

Second, crude oil surged more than 3% to push back above $100 per barrel after President Donald Trump described the ceasefire with Iran as being on “massive life support,” casting fresh doubt over a resolution to the conflict that has kept the Strait of Hormuz effectively closed and kept energy costs elevated throughout the year.

The combination of a higher-for-longer rate environment and persistently elevated oil prices creates a difficult backdrop for high-multiple growth stocks, which is exactly what SanDisk became after an extraordinary run in 2026.

Despite Tuesday’s decline, SanDisk stock has still returned more than 400% since the start of 2026, making the session’s pullback look modest relative to the scale of the year-to-date rally.

The fundamental picture underlying the stock remains exceptional, with the company’s most recent quarterly report showing revenue more than tripling to $5.95 billion, with the data centre segment delivering a stunning 645% year-over-year gain as AI infrastructure demand drove record storage orders.

Earnings per share came in at $23.41, nearly $9 ahead of consensus estimates, while adjusted gross margins expanded to 78.4% and free cash flow approached $3 billion in the quarter.

Management guided for at least $7.75 billion in revenue in the fourth quarter at earnings of at least $31.50 per share, indicating the company expects its growth trajectory to continue accelerating rather than normalising.

SanDisk has also fundamentally restructured its revenue model, signing five multi-year supply agreements with hyperscaler customers backed by more than $11 billion in financial guarantees covering more than one-third of projected fiscal 2027 bit output, replacing volatile spot-market exposure with contracted, predictable cash flows unprecedented in the NAND flash industry.

The company has retired all long-term debt and authorised a $6 billion share repurchase programme, further strengthening the investment case for long-term holders looking through Tuesday’s sector-driven weakness.

Wall Street’s consensus on SNDK remains at Strong Buy, with the most bullish price targets reaching $2,000, implying potential upside of approximately 38% from current levels even after the stock’s extraordinary run this year.