Sandisk Shares Retreat Following OpenAI Growth Concerns

Sandisk (NASDAQ: SNDK) shares fell 4.7% on Tuesday, erasing a portion of the gains seen earlier in the week. The decline comes as investors react to reports suggesting a slowdown in the growth trajectory of OpenAI, a primary driver of AI infrastructure demand. The volatility follows a surge on Monday that pushed the stock to a record high. This rally was sparked by Melius Research, which issued a buy rating and a price target of $1,350, citing an unusual level of demand for computer memory chips essential for artificial intelligence workloads. According to a report from the Wall Street Journal, OpenAI reportedly missed its 2025 targets for revenue and new user acquisition. The report suggests that ChatGPT failed to reach one billion weekly active users last year, with some users migrating to competitors such as Alphabet's Gemini and Anthropic. Despite the growth concerns at OpenAI, the company continues to invest heavily in AI chips and memory. This sustained spending, combined with bullish outlooks from DA Davidson and TD Cowen—who argue that the current memory cycle will be more durable than previous ones—suggests a strong fundamental backdrop for memory providers. The current price action reflects a tension between short-term sentiment regarding AI software adoption and the long-term structural demand for the hardware required to power these systems.