SanDisk Surges 54.6% in May on Strong Q3 Earnings, Drops 8% in June as AI Cools

SanDisk (SNDK) surged 54.6% in May following better-than-expected Q3 results, significantly outperforming the S&P 500's 5.2% gain and the Nasdaq's 8.4% rise. The company reported Q3 revenue of $5.95 billion, up 251% year-over-year, with non-GAAP earnings per share of $23.41, far exceeding analyst expectations of $14.66.

However, SanDisk dropped approximately 8% in June as AI chip enthusiasm waned and U.S. labor data raised rate hike concerns. The U.S. May jobs report showed 172,000 nonfarm payroll additions, significantly above the expected 80,000, prompting investor worry that the Federal Reserve may lean toward rate hikes to combat inflation—a headwind for semiconductor valuations.