Shares Dip After Google AI Announcement
Sandisk (NASDAQ: SNDK) saw its shares decline by 14.1% this week, closing at 4:11 p.m. ET on Thursday, following Google’s announcement of a new compression algorithm for AI models that significantly decreases their memory requirements by over 6X.
The announcement stoked investor fears regarding potential declines in memory demand, coinciding with broader economic concerns surrounding the ongoing war in Iran. Experts have increased the likelihood of a U.S. recession this year, predicting an inflation rise to 4.2% by 2026 as per the Organization for Economic Cooperation and Development.
Despite the immediate sell-off, analysts suggest a cautious approach, highlighting that it may be premature to assume long-term negative impacts on Sandisk from the recent changes in AI technology.
