Sandisk (SNDK +2.02%) stock is in the red in Tuesday's trading despite having initially posted big gains. As of 12:30 p.m. ET, the company's share price was down 3.5%. Meanwhile, the S&P 500 was off 1.6%, and the Nasdaq Composite was down 3.2%. The stock had been up as much as 9.8% early in the day's trading.
Sandisk opened today's daily session with bullish momentum at its back, but its valuation has retreated as investors turned bearish on the broader market. Weakening momentum for the artificial intelligence (AI) chip stock trade and some market jitters ahead of SpaceX's massive upcoming initial public offering (IPO) are to blame.
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Sandisk is slipping as the chip trade takes a step back
AI chip stocks have been red hot this year, and Sandisk has been one of the biggest winners in the category. The memory technologies specialist's share price is up 571% across 2026's trading and 3,950% over the last year. Fundamental Chart Creator
Soaring demand for AI memory solutions has supercharged the company's sales and created pricing power that has produced a massive surge in margins. On the other hand, the company's valuation has already seen a massive upward rally. With investors broadly turning more cautious on chip plays today, Sandisk stock is seeing a pullback.
NASDAQ: SNDK
Key Data Points
Investors are nervous about SpaceX's $1.77 trillion IPO
SpaceX is set to go public on June 12 and has set a fixed price of $135 per share for its stock, which values the company at $1.77 trillion. It's poised to be the largest-ever IPO by a wide margin, and the stock's debut will likely have spillover effects for the broader market.
For better or worse, early trading for SpaceX can be expected to have a significant near-term impact on valuations for other growth stocks. The IPO could be viewed as a referendum on growth-dependent tech sector valuations, and overall market volatility could be high as we move through the month.
