SanDisk Corp.'s stock plummeted 5.23% during intraday trading on Monday, as the memory chipmaker was caught in a broader sector selloff.

The decline comes despite SanDisk's strong fundamental outlook, with the company projected to see 130.9% sales growth in 2026 according to analyst estimates. The stock has been swept up in what Mizuho analysts describe as a "crisis of confidence" gripping the technology sector, where investors are worried about unsustainable valuations and news sensitivity that can impact the entire tech trade.

Memory chipmakers across the board saw shares fall in premarket trading, indicating sector-wide weakness. While SanDisk and other memory makers like Micron Technology have benefited from AI-driven demand and supply shortages that have given them pricing power, the broader tech sector rotation and valuation concerns have created headwinds for even fundamentally strong companies in the space.