<div id="readability-page-1"><p>SanDisk (SNDK) stock dropped 5.7% on February 17 and fell another 2% in after-hours trading following news that former parent Western Digital (WDC) plans to exit its entire stake in the memory chipmaker. According to a regulatory filing, WDC is selling 7.51 million shares at $535 to $555 per share.</p><h3>President's Day Sale - 70% Off</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>It is worth noting that SanDisk will not receive any proceeds from this secondary share offering. Instead, WDC will raise up to $3.09 billion from this stock sale. The offer price represents a discount of 9.4% to 6% to SNDK's closing price of $590.59 yesterday.</p> <h2><strong>Why Is Western Digital Selling SNDK Stock?</strong></h2> <p>Western Digital aims to reduce its debt by exchanging the SanDisk shares for debt held by affiliates of JPMorgan (JPM) and Bank of America (BAC). As of December 31, 2025, WDC had $2.23 billion in short-term debt and $2.43 billion in long-term debt.</p> <p>WDC had announced plans to sell its remaining 7.5 million SanDisk shares before the one-year anniversary of their spinoff, which closed on Feb. 24, 2025. CFO Kris Sennesael announced this during WDC's January 29 quarterly earnings call.</p> <h2><strong>SanDisk Stock Price Movement</strong></h2> <p>The offering coincides with a global shortage of flash memory chips, fueled by massive AI spending. Flash memory technologies such as NAND (Not AND) and DRAM (dynamic random-access memory) are essential for data storage/processing in AI data centers, devices, and servers, driving current demand spikes.</p> <p>SanDisk's products power computers and phones, but the tech industry's boom-and-bust cycles have kept its stock valuation modest. With DRAM chip spot prices surging since September, shares of SanDisk and peers are likely to remain high at least into 2026. SNDK stock has skyrocketed more than 1,152% over the past year.</p> <h2><strong>Is SNDK a Good Stock to Buy?</strong></h2> <p>Analysts remain divided about SanDisk's long-term outlook. On TipRanks, SNDK stock has a Moderate Buy consensus rating based on 11 Buys and four Hold ratings. The average SanDisk price target of $637.33 implies 7.9% upside potential from current levels.</p></div>

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<p>SanDisk (SNDK) stock fell 5.7% on February 17, with an additional 2% drop in after-hours trading, following Western Digital's (WDC) announcement to sell its entire stake in the company. WDC plans to sell 7.51 million shares at $535 to $555 each, raising up to $3.09 billion to reduce its debt. This sale comes amid a global shortage of flash memory chips, with analysts divided on SNDK's long-term outlook, giving it a Moderate Buy consensus rating and a price target of $637.33, indicating a potential upside of 7.9%.</p>

Why SanDisk Stock Dropped 6% on WDC Stake Sale News