SanDisk Corp. (SNDK) experienced a pre-market plunge of 5.50% on Friday, extending a recent pattern of declines for the storage technology company.

The selling pressure is primarily attributed to profit-taking by investors following the stock's extraordinary year-to-date surge of over 500%, which was driven by soaring NAND flash memory prices and AI-fueled storage demand. The rapid ascent had raised concerns about stretched valuations, contributing to the cautious sentiment.

Furthermore, the decline occurred amid a broader selloff in U.S. stock index futures, with Nasdaq futures dropping, which dragged storage and chip sector stocks lower across the board. Adding to the negative pressure, SanDisk recently advised its shareholders to reject an unsolicited mini-tender offer, which represented a potential company-specific headwind for investor confidence.