Why Sandisk Stock Crashed on Friday

Sandisk shares fell sharply on Friday after a volatile week, with stock down about 8% in the first 10 minutes of trading, following a major jump the prior day. The article attributes part of the movement to broader industry reaction after Micron’s blockbuster Q3 earnings, which had lifted Sandisk by 22% on Thursday, with profit-taking contributing to the decline. However, the larger driver discussed involves OpenAI and shifting timing around its IPO. The New York Times reports that concerns tied to the post-IPO price decline of SpaceX have led OpenAI to reconsider when to list. Advisors reportedly told CEO Sam Altman to choose between an IPO in 2027 with a potential $1 trillion valuation or an IPO in 2026 with a risk of a lower valuation, with Altman leaning toward postponing. OpenAI recently completed a pre-IPO funding round valuing it at $852 billion and raising $122 billion, intended for computing capacity leased from hyperscalers; if delayed, that spending could be pushed back, weighing on memory and chip suppliers like Sandisk.