Why Sandisk Stock Dropped Again on Tuesday
2026-10-13 15:23
•Rich Smith •The Motley Fool
•••• •• Axe Cap view
Sandisk Slides Again as Chinese Chip Rival Claims Spotlight
Renewed worries about China's CXMT chip tech shake Sandisk shares, though risks appear overstated given tech gaps.
Sandisk’s recent share drops reflect a familiar story: fear of Chinese competitors making rapid advances in semiconductor tech. CXMT’s raise of 4F square stacked DRAM and HBM ambitions clearly ring alarm bells for memory chip incumbents. But Sandisk’s core strength lies in NAND flash memory, a space where CXMT isn’t yet present. South African investors should watch this through the USD/ZAR lens, as rising US-China tech tensions could weaken the rand if export controls ramp up further. For large-cap exposure here, Prosus and Naspers offer more reliable tech bets than chasing semiconductor volatility abroad. The market might be overplaying CXMT’s threat to Sandisk, but if Chinese firms close the tech gap faster than expected, risk appetite for US memory players—and by extension the rand—could sour sharply. this is just our opinion and not financial advice
Avoid Sandisk for now and keep an eye on USD/ZAR as a barometer of US-China tech risk. Consider trimming any overweights in global tech-exposed rand plays like Naspers if the chip war escalates.
- SNDK
- USD/ZAR
- Naspers
- CXMT accelerates NAND production sooner than expected
- US-China tech tensions flare, impacting USD/ZAR and rand sentiment
6/10
Sandisk stock fell 3.5% on Tuesday amid renewed concerns about Chinese competitor CXMT's improved memory chip technology. CXMT, which went public in July with plans to challenge Western memory makers, is developing new 4F square stacked DRAM architecture and aims to produce high-bandwidth memory (HBM) later this year. However, analysts note CXMT remains 2-3 generations behind in DRAM technology and doesn't produce NAND chips, Sandisk's specialty, suggesting the threat may be overstated.
Our take is based on reporting first published by The Motley Fool.