CMB Stock News Of The Day 📰🗞️🗞️📈📉

“SanDisk Pulls Back After Citron Research Announces Short Position” 🚨🚨🚨

After an astonishing 1,200% surge over the past year, SanDisk shares took a breather Tuesday morning following news that Citron Research — the firm led by well-known short seller Andrew Left — has initiated a short position.

SanDisk, which was spun off from Western Digital just a year ago, has been one of the market’s most explosive performers, riding a parabolic rise in memory chip prices. The stock is up more than 150% year-to-date alone, fueled by tight supply conditions and aggressive upward revisions to earnings estimates.

But Citron is betting the cycle is nearing a peak.

In a post on X, the firm argued that while investors are treating SanDisk like an AI-era powerhouse similar to Nvidia, the comparison breaks down under scrutiny. Nvidia, Citron claims, has a competitive moat. SanDisk, by contrast, sells what it characterizes as a commodity — memory.

The core of the bearish thesis is simple: memory is cyclical. Historically, periods of tight supply and soaring prices have eventually been followed by oversupply as major manufacturers ramp production. Citron pointed specifically to large contract chip producers such as Samsung Electronics and TSMC, suggesting that once production accelerates, pricing power could quickly erode.

“Memory is a cycle, and cycles peak,” the firm warned — invoking past boom-and-bust years like 2008, 2012, and 2018.

Wall Street Isn’t Convinced — Yet

Despite the historical precedent, many analysts believe the current memory upcycle could persist longer than skeptics expect. AI infrastructure buildouts, hyperscaler demand, and constrained advanced manufacturing capacity have created structural tightness that may not unwind overnight.

Following its latest earnings report, SanDisk issued strong guidance, prompting Wall Street to significantly raise forward earnings estimates for the next several years. Notably, even as the stock has surged, forward valuation multiples have compressed — meaning earnings expectations have grown even faster than the share price.

High Risk, High Momentum

Shorting a momentum stock that has climbed more than 150% this year is no small gamble. Stocks in powerful uptrends can stay elevated far longer than fundamentals alone might justify — especially when earnings revisions are still moving higher.

For now, SanDisk represents a classic market tug-of-war:

Is this a structurally stronger AI-driven memory cycle — or just another chapter in a familiar boom-and-bust story?

Investors will soon find out.