On August 28, SanDisk Corp. declined 3.03% overnight, trading at $1438.5/share, with turnover of $121 million. The stock retreated after surging over 3% in the prior session on multiple positive catalysts.

On the news front, despite Kioxia and SanDisk announcing a joint investment exceeding $31 billion (5 trillion yen) over six years to expand NAND memory factories in Japan targeting AI storage demand, market participants have shifted focus to potential supply oversupply risks following such massive capital expenditure. Analysts noted that while the investment signals strong demand backed by long-term contracts, the storage chip industry faces concerns that aggressive capacity expansion could eventually lead to excess supply. Additionally, current sector valuations sit at historically elevated levels, raising profit-taking risk after the prior day's rally driven by the Arete Research target price increase to $3,000, Moody's upgrade to Ba1, and the Kioxia partnership announcement.

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