SanDisk Slumps After Nasdaq Falls Over 4% and Broadcom Freezes AI Chip Forecast
SNDK•SanDisk shares dropped Friday after a stronger-than-expected May jobs report spurred Federal Reserve rate-hike fears and profit-taking in momentum tech stocks following Broadcom’s frozen AI chip forecast. Historical patterns show a 90% chance of Nasdaq lows being breached within five trading days, indicating potential further pressure on SanDisk shares.
1. Sell-Off Triggers
SanDisk shares tumbled Friday as a stronger-than-expected May jobs report heightened Federal Reserve rate-hike concerns, prompting profit-taking in momentum tech stocks. The rout was compounded by Broadcom’s decision not to raise its full-year custom AI chip forecast, increasing downward pressure on semiconductor names.
2. Historical Market Patterns
Technical data shows that on 22 prior occasions since 1993 when the Nasdaq Composite dropped 4% or more on a Friday, it breached Friday’s intraday low in the next five trading days 90% of the time. Despite near-term risks, the index averaged a 3.19% gain over the following ten days and 4.15% over 20 days, offering a potential rebound window for SanDisk.
