Sandisk Shares Slide 22% as DRAM Prices Fall 6% on TurboQuant
Sandisk shares have fallen 22% from mid-March highs after spot DRAM prices dropped about 6% and Google’s TurboQuant memory compression technology reduced AI hardware demand forecasts. While analysts still expect tight markets to support long-term growth, rising capital spending and model efficiency gains may pressure supplier margins.
1. Recent Share Decline
Sandisk stock has retreated 22% from its peak in mid-March, underperforming the broader market as memory names come under renewed selling pressure over the last two weeks.
2. Drivers Behind DRAM Price Softening
Spot DRAM prices have fallen roughly 6% since mid-March, driven by easing supply constraints and the launch of TurboQuant, which can cut AI model memory needs by up to sixfold.
3. Analyst Outlook and Risks
Many analysts remain bullish on long-term AI-driven demand and tight inventory levels, but caution that high expectations and shrinking price power could heighten downside risks.
4. Future Supply and Demand Factors
Ongoing chipmaker capital spending ramps and further AI model efficiency improvements may boost supply and curb hardware growth, potentially compressing margins for memory suppliers.