SNDK Stock Plunges Over 30% In 3 Days Amid Semiconductor Rout – Retail Traders Debate Whether $1,000 Will Hold

• The latest selloff has erased around 35% of Sandisk's value over the past three trading sessions.
• Retail traders on Stocktwits debated whether Sandisk could fall below the psychologically important $1,000 level.
• Some stated that such a move could trigger fresh selling pressure.

Shares of Sandisk (SNDK) plunged in Tuesday morning trading, extending the storage-chip maker's three-day slide to more than 35% and fueling debate among retail traders over whether the stock would drop below the psychological threshold of $1,000.

SNDK stock fell more than 14% in morning trade and was the top trending ticker on Stocktwits at the time of writing. The latest decline extends the storage-chip maker’s drop this week, with the stock down more than 35% over the past three trading sessions. 

The weakness was broad across the semiconductor sector. The VanEck Semiconductor ETF (SMH) dropped about 5%, while Micron Technology (MU) slid roughly 12%. The Technology Select Sector SPDR Fund (XLK) also fell to its lowest level since May.

Despite leading the drop among chip stocks on Tuesday, SNDK stock has outperformed its peers this year by a wide margin.

Retail Traders Eye The $1,000 Level

The drop in SNDK stock sparked intense debate among retail traders over whether Sandisk could break below the $1,000 mark. While some argued the move was "inevitable," others warned that such a breach could trigger a wave of panic selling.

At its session low, Sandisk traded near $1,050 before trimming part of its losses to trade around $1,090 at the time of writing.

Retail sentiment around SNDK stock on Stocktwits improved to ‘neutral’ from ‘bearish’ territory over the past day while chatter jumped to ‘high’ from ‘low’ levels. Platform data showed a nearly 900% uptick in message volume over the past 24 hours. 

China's Chip Progress Rattles Chip Stocks

Selling pressure spread across global markets overnight. South Korea's Kospi fell about 10%, while Japan's Nikkei declined roughly 4%.

The selloff comes after Chinese memory-chip maker CXMT made a blockbuster stock-market debut, fueling speculation that China's domestic memory industry is becoming increasingly competitive. 

The Information also reported that China has begun producing advanced immersion DUV lithography systems domestically, reinforcing investor fears that the country's semiconductor ecosystem is steadily closing the technology gap with Western suppliers.

According to Morgan Stanley’s Chief U.S. Equity Strategist & Chief Investment Officer, Mike Wilson, markets are now punishing memory and chip stocks after moving on from hyperscalers.

Markets are also preparing for a pivotal week of earnings from the technology sector. Microsoft (MSFT), Meta Platforms (META), Apple (AAPL) and Amazon (AMZN) are all scheduled to report this week, with investors watching for whether heavy AI infrastructure spending continues to grow.

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