SanDisk Corp. (SNDK) shares plummeted 5.25% during Thursday's trading session, reversing an initial premarket gain, as investors digested the company's mixed fiscal third-quarter results and a significant price target cut from Wells Fargo.

The memory chip maker reported a fiscal Q3 adjusted loss of $0.30 per diluted share, which was better than the FactSet analyst consensus estimate of a $0.38 loss. Revenue for the quarter came in at $1.70 billion, surpassing expectations of $1.62 billion. Despite the revenue beat, SanDisk swung to a loss compared to the profit of $0.57 per share in the same quarter last year.

The stock's sharp decline can be attributed to several factors. Firstly, Wells Fargo cut its price target on SanDisk from $56 to $45, signaling reduced confidence in the company's near-term prospects. Additionally, while SanDisk's Q4 guidance of an adjusted loss between $0.10 and earnings of $0.15 per share on revenue of $1.75 billion to $1.85 billion was generally in line with analyst expectations, it failed to inspire investor confidence. The market's negative reaction suggests concerns about the company's profitability and growth trajectory in the face of ongoing challenges in the memory chip sector.