Why Sandisk Stock Is Still Dropping

Sandisk (SNDK) shares fell 9.6% for a second straight day after TSMC beat Q2 earnings but warned capital investment would rise above $60 billion, exceeding prior forecasts of $54 billion. The article argues the sell-off is misplaced: TSMC's heavy AI chip production expansion should increase demand for Sandisk's NAND flash memory chips, which pair with TSMC-made CPUs and GPUs.

Why it matters: While acknowledging that rising competition and eventual cyclical supply-demand shifts could pressure margins, the author concludes Sandisk's profits look safe for now and the TSMC spending is a positive signal for memory chip demand.