Sandisk stock surged 54.6% in May but is falling in June, according to The Motley Fool.
What happened
Sandisk (NASDAQ: SNDK) experienced a significant rise in its stock price during May, largely driven by strong fiscal results released on April 30 for its third quarter, which ended April 2. According to the report, the company achieved non-GAAP earnings of $23.41 per share on sales of $5.95 billion, exceeding analyst expectations.[1]
These results indicated a remarkable year-over-year sales increase of 251% and led to a series of price target upgrades from analysts. The favorable trading environment for AI chip stocks last month further fueled Sandisk’s bullish momentum.[3]
Why it matters
The recent decline in Sandisk’s stock, down 8% in June, highlights concerns among investors regarding rising interest rates. Positive employment numbers released in the May jobs report from the Bureau of Labor Statistics indicated that the U.S. economy added 172,000 nonfarm payroll positions, far exceeding forecasts.
This strong job growth can lead to potential rate hikes from the Federal Reserve, which typically negatively impacts tech stocks like Sandisk by creating a less attractive investment environment.
Background
On April 30, 2026, Sandisk published its fiscal Q3 report, showcasing unexpectedly strong performance and setting the stage for a record month. Prior to this, the company’s stock had seen fluctuations in response to broader market trends, especially those affecting technology stocks.[2]
What’s next
Investors will be closely monitoring upcoming economic reports and Fed meetings that could provide further indications of interest rate adjustments and their potential impact on tech stocks, including Sandisk.
