SanDisk Corp. (SNDK) shares tumbled 5.15% in pre-market trading on Monday, as disappointing quarterly results from industry peer Kioxia triggered a broad sell-off across the storage chip sector.

The decline came after Kioxia reported quarterly revenue of 1.77 trillion yen and operating profit surging 27-fold to 1.27 trillion yen, but both figures fell short of market expectations. The operating profit missed the consensus estimate of 1.37 trillion yen, swiftly shifting market sentiment and dragging down storage chip stocks including SanDisk and Micron Technology. The broader chip sector also faced pressure, with multiple semiconductor names trading lower in the pre-market session.

Adding to investor caution, SanDisk is scheduled to report its quarterly earnings on August 5 after market close, with consensus expectations of approximately $84 billion in revenue and adjusted EPS of $34.45. The upcoming report follows a cumulative 47% decline in July, and investors remain wary about whether the results can validate the sustainability of AI-driven storage demand, intensifying pre-earnings volatility.