Why Sandisk Stock Crashed on Friday

The rollercoaster thrust that is investing successful Sandisk (NASDAQ: SNDK) banal took yet different crook connected Friday, arsenic shares of the machine representation shaper plunged 8% successful the archetypal 10 minutes of trading.

You tin blasted OpenAI for that.

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Why not blasted Micron?

Sure, portion of the crushed Sandisk is selling disconnected contiguous relates to Micron's (NASDAQ: MU) blockbuster Q3 net report, which besides sent Sandisk banal flying 22% connected Thursday. It makes consciousness that, aft a large determination similar that, there'd beryllium immoderate profit-taking happening today.

The bigger quality today, though, concerns OpenAI.

As The New York Times reports, worries implicit the abrupt downturn successful the terms of SpaceX (NASDAQ: SPCX) shares post-IPO person OpenAI rethinking whether now's truly the close clip for it to IPO. OpenAI's fiscal advisors are telling CEO Sam Altman helium has to marque a choice: IPO successful 2027 and perchance unafraid a $1 trillion valuation for OpenAI -- oregon IPO successful 2026 and hazard a little valuation.

Again, reportedly, Altman is intent connected ringing the trillion-dollar doorbell and present leans toward postponing the OpenAI IPO.

What this means for Sandisk

So what does this person to bash with Sandisk?

OpenAI conscionable completed a pre-IPO backing circular that valued it astatine $852 cardinal and raised $122 cardinal successful cash. OpenAI's expected to walk this wealth renting computing capableness from hyperscalers, who successful crook volition walk heavy connected machine chips and representation to outfit gigantic information centers to tally OpenAI's artificial quality programs.

The aforesaid happening volition hap erstwhile OpenAI raises possibly adjacent more cash astatine its IPO.

But if OpenAI delays its IPO to 2027, it mightiness person to hold spending each that money. This postpones the windfall for hyperscalers, for chipmakers -- and for Sandisk, too.

That's wherefore Sandisk banal is down today.

Should you bargain banal successful Sandisk close now?

Before you bargain banal successful Sandisk, see this:

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