Can you stomach SNDK at $1,510?
First, the surface: blood in the streets, with retail investors panic-selling.
On August 24, SNDK closed at $1,493.12, plunging 6.45%. The intraday low was $1,416, down nearly 40% from the June ATH of $2,354. It has fallen 11.6% in 7 days. The price has dropped below the 50 EMA ($1,510), while the 200 EMA is still at $1,067, far below. RSI is neutral at 49.63, and MACD remains positive but is starting to flatten. The long-term trend remains intact, but the short-term market is undergoing an aggressive shakeout.
First: earnings were explosive, but the market chose to ignore them.
On August 5, SNDK released its Q4 FY2026 earnings report: revenue of $8.97 billion, up 372% year over year and 51% quarter over quarter. Non-GAAP EPS was $39.25, beating market expectations by 14.63%. Gross margin was 84.6%. Data center revenue was $2.98 billion, up 103% quarter over quarter.
The results were spectacular, yet the stock fell from $2,350 to $1,500.
Why? Because the market is always trading on “expectations.” On the day earnings beat expectations, the stock fell 9% directly in pre-market trading—the classic “sell the news” script.
Second: Wall Street is collectively bullish, while retail investors are taking losses.
On August 14, JPMorgan upgraded SNDK from “Neutral” to “Overweight,” with a price target of $2,250. Goldman Sachs has a $2,200 price target. Bernstein’s price target is $3,000.
Of 25 analysts, 22 have given it a “Buy” or “Strong Buy” rating. The median consensus price target is above $2,100.
Sound familiar? Institutions are talking it up while retail investors panic-sell at a loss. It is the same familiar formula again.
Third: a technical signal has emerged that must be taken seriously.
Yesterday, the stock bounced after dropping to $1,416, showing that buyers are indeed stepping in around the $1,400–$1,450 zone. The 4-hour chart formed a hammer candle with a particularly long lower shadow, dipping to $1,420 before recovering.
But the resistance is also clear: the 50 EMA at $1,510 is the first hurdle, while $1,560–$1,600 is a stronger resistance zone. Reclaiming it will not be easy.
You decide in the battle between bulls and bears
On one side:
Q4 revenue surged 372%, with EPS of $39.25, beating expectations by 14%
8 long-term contracts with a minimum value of $93.9 billion
JPMorgan at $2,250, Goldman Sachs at $2,200, and Bernstein at $3,000
22 of 25 analysts are bullish
A high-volume rebound in the $1,400–$1,450 zone, with a hammer signaling a potential bottom
On the other side:
Down nearly 40% from $2,350 to $1,500
Perpetual futures open interest evaporated 30% in one week
U.S. Treasury yields at elevated levels are pressuring high-beta technology stocks
The memory sector is under broad pressure, with MU down 6.2% over the same period
The $1,560–$1,600 resistance zone is extremely strong, and the short-term structure is weak
Resistance above: $1,510 (50 EMA) → $1,560–$1,600 → $1,700–$1,800 → $2,350 (ATH)
Support below: $1,450–$1,485 → $1,400 (the bulls’ lifeline) → $1,300 → $1,100–$1,200
Trading strategy
Short-term traders:
Wait for a pullback to $1,450–$1,485 to cautiously open a long position, with a stop-loss below $1,400. The first target is $1,510–$1,560, and the second target is $1,600–$1,700. If it breaks below $1,400 on high volume, exit decisively.
Swing traders:
Wait for a high-volume daily close reclaiming $1,560–$1,600 before entering on the right side, with a target above $1,800. If it breaks below $1,400, switch short and target $1,300.
Long-term believers:
Accumulate in batches in the $1,400–$1,500 zone. The “shovel seller” logic for AI memory remains unchanged, and $93.9 billion in contracts has locked in revenue for the next few years. The consensus 2027 price target is above $2,000.
SNDK now looks just like NVDA at the end of 2022—
99% of people thought “the AI bubble is about to burst,” but it went on to rise fivefold.
The day it reclaims $1,600, you will realize:
It was never that SNDK was incapable—it was that you kept selling at the bottom every time.
What is your SNDK cost basis?
At $1,510, do you dare buy the dip?
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