Key Takeaways
- • SanDisk (SNDK) plunged 22.26% to $806.43 on Thursday, November 5, on roughly 30 million shares, with volume more than triple its 20-day average, erasing gains since March, according to the primary report.
- • The selloff came despite record results: quarterly revenue of $11.03 billion, up 378% year over year, and guidance of $12.2 billion to $12.6 billion for the next quarter.
- • Political risk tied to data center growth, including Democratic wins in Congress and anti-data-center gubernatorial wins in Texas, Georgia, and Ohio, is cited as the trigger, given SanDisk's enterprise SSD exposure.
- • The Philadelphia Semiconductor Index fell about 12.3%, its worst session since March 2020, and the Nasdaq entered correction territory after a 5.5% drop, per TradingKey data cited in the report.
- • Hedge fund positioning is the central concern: funds reportedly erased every net AI stock purchase since early 2025 within five sessions, and Morgan Stanley data shows a 7.8% cut in overall exposure, the largest since the series began in 2016.
Summary
SanDisk (SNDK) fell 22.26% to $806.43 on Thursday, November 5, 2026, on roughly 30 million shares, with volume exceeding triple the 20-day average. The memory chipmaker returned to its March 20 price level and now trades 66% below its June peak of $2,354. The decline came just over a week after the company reported record quarterly results on October 29, including revenue of $11.03 billion, up 378% year over year, and data center sales of $4.80 billion, up 61% sequentially. Management guided next-quarter revenue to $12.2 billion to $12.6 billion, but investors reacted to political developments instead.
The primary report attributes the selloff to the outcome of U.S. midterm-related elections. Democrats won both chambers of Congress, and gubernatorial candidates opposed to rapid data center expansion won in Texas, Georgia, and Ohio. Because SanDisk's enterprise solid-state drives sell directly into data centers, the report characterizes these results as a direct risk to its demand outlook. Arizona Rep. Yassamin Ansari also called for a pause on advanced AI development on X. The broader semiconductor sector was hit hard, with the Philadelphia Semiconductor Index (SOX) falling about 12.3%, its worst session since March 2020, according to TradingKey data. The Nasdaq slid into correction territory after a 5.5% decline.
The report frames the rout as a potential warning for leveraged hedge funds. A post on X by user jarzoombek suggested fund collapses may be a matter of time, targeting funds that have ridden AI winners while shorting traditional firms expected to lose to AI; the report notes no public data has confirmed that specific positioning. Broader positioning data gives the concern more weight. Hedgeweek, citing Goldman Sachs prime brokerage data from October, reported that hedge funds erased every net AI stock purchase made since early 2025 within five sessions. Morgan Stanley data shows funds cut overall exposure by about 7.8%, the largest reduction since the series began in 2016. Memory names bore the heaviest losses, with Samsung, SK Hynix, Micron, and SanDisk shedding more than $700 billion in combined market value in under two weeks. The report also recalls that in July, margin calls reduced Leopold Aschenbrenner's Situational Awareness fund from over $45 billion to about $10 billion, and that the fund bought SanDisk call options again two months later.
Technically, SNDK has fallen nearly 58% from its September 22 swing high near $1,909. Thursday's session broke the 0.786 Fibonacci retracement at $942, the final support from the late-March low, on the largest volume bar since February, and the RSI dropped to about 25, its lowest reading on the chart. The stock recovered to about $860 in after-hours trading. The report says bulls need a daily close above $942 and then $1,000 to repair the structure, with heavy resistance at $1,245 to $1,320. On the downside, the report flags $800 and $700, with the March low near $558.58 as the next major reference. The report notes that technology still represents 23.5% of Goldman's global prime brokerage book, suggesting further AI exposure could unwind. This analysis is editorial interpretation and technical in nature, and its forecasts are uncertain.
The primary report attributes the selloff to the outcome of U.S. midterm-related elections. Democrats won both chambers of Congress, and gubernatorial candidates opposed to rapid data center expansion won in Texas, Georgia, and Ohio. Because SanDisk's enterprise solid-state drives sell directly into data centers, the report characterizes these results as a direct risk to its demand outlook. Arizona Rep. Yassamin Ansari also called for a pause on advanced AI development on X. The broader semiconductor sector was hit hard, with the Philadelphia Semiconductor Index (SOX) falling about 12.3%, its worst session since March 2020, according to TradingKey data. The Nasdaq slid into correction territory after a 5.5% decline.
The report frames the rout as a potential warning for leveraged hedge funds. A post on X by user jarzoombek suggested fund collapses may be a matter of time, targeting funds that have ridden AI winners while shorting traditional firms expected to lose to AI; the report notes no public data has confirmed that specific positioning. Broader positioning data gives the concern more weight. Hedgeweek, citing Goldman Sachs prime brokerage data from October, reported that hedge funds erased every net AI stock purchase made since early 2025 within five sessions. Morgan Stanley data shows funds cut overall exposure by about 7.8%, the largest reduction since the series began in 2016. Memory names bore the heaviest losses, with Samsung, SK Hynix, Micron, and SanDisk shedding more than $700 billion in combined market value in under two weeks. The report also recalls that in July, margin calls reduced Leopold Aschenbrenner's Situational Awareness fund from over $45 billion to about $10 billion, and that the fund bought SanDisk call options again two months later.
Technically, SNDK has fallen nearly 58% from its September 22 swing high near $1,909. Thursday's session broke the 0.786 Fibonacci retracement at $942, the final support from the late-March low, on the largest volume bar since February, and the RSI dropped to about 25, its lowest reading on the chart. The stock recovered to about $860 in after-hours trading. The report says bulls need a daily close above $942 and then $1,000 to repair the structure, with heavy resistance at $1,245 to $1,320. On the downside, the report flags $800 and $700, with the March low near $558.58 as the next major reference. The report notes that technology still represents 23.5% of Goldman's global prime brokerage book, suggesting further AI exposure could unwind. This analysis is editorial interpretation and technical in nature, and its forecasts are uncertain.
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