SanDisk Corp.'s stock plummeted 5.24% during intraday trading on Thursday, as the memory chip maker faced significant selling pressure.

The sharp decline comes as investors take profits following an extraordinary rally that saw the stock surge over 4,000% since its spinoff from Western Digital in early 2025. The historic gains were fueled by explosive AI data center demand, with the company's data center segment reporting massive year-over-year revenue growth. However, the disclosure of insider transactions has added to the selling pressure at elevated price levels.

Analysts note that memory chip companies often face cautious valuations despite strong performance due to cyclical uncertainties in the industry. While SanDisk's fundamentals remain strong with continued growth guidance, the stock's meteoric rise has made it vulnerable to concentrated profit-taking, leading to the current pullback.