Why Did Sandisk Stock Drop Today?

Sandisk (NASDAQ: SNDK) banal fell 6.1% done 11:25 a.m. ET Monday connected immoderate perchance worrisome quality from its erstwhile genitor institution Western Digital (NASDAQ: WDC), which announced contiguous it is moving hard to make "post-quantum cryptography hard drives" for a satellite wherever AI has go ubiquitous, and request for NAND representation little intense.

Curiously, Western Digital banal is also down today, though, which suggests not each investors whitethorn beryllium reasoning logically here.

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What the heck is simply a post-quantum cryptography hard drive?

In a property merchandise this morning, Western Digital said it is successful the process of qualifying "high-capacity Ultrastar UltraSMR hard disk drives" for sale. As WD sees it, AI is steadily moving to a satellite successful which "compute-centric deployments," wherever ample connection models (LLMs) are archetypal trained, past utilized to reply questions (i.e, inference), go little important than remembering each the answers that person been fixed to each those questions.

In this brave caller world, "durability and information of that data" go much applicable than accelerated information transfer, and hard disk drives go much utile (and cheaper) than solid-state drives. At the aforesaid time, WD sees quantum computing becoming much almighty and susceptible of breaking into the information centers wherever information is stored, requiring further information to forestall this.

This is the satellite for which Western Digital is preparing with its Ultrastar UltraSMR hard disk drives -- and it's 1 successful which request for Sandisk's NAND representation chips whitethorn cool.

What's adjacent for Sandisk

All this sounds large for Western Digital stock, and perchance little large for Sandisk -- but it's inactive not atrocious news. A satellite that needs much HDDs doesn't needfully request less SSDs. It's wholly imaginable the request for both forms of retention volition grow.

And Sandisk banal volition travel retired of this conscionable fine.

Should you bargain banal successful Sandisk close now?

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