Sandisk shares fell 8.6% by 11:50 a.m. ET Wednesday after the midterm results, as investors worried a Democratic Congress could tighten oversight of AI infrastructure and data-center expansion, which could reduce memory sales. StreetInsider blamed the election for renewed selling pressure on AI and memory chip stocks, and Fox Advisors had downgraded Sandisk to equalweight and Wells Fargo cut its price target as the election approached. Citigroup forecasts continued memory undersupply in 2027, with production rising 22% while demand grows 26%. The author argues the memory chip rally should continue as long as companies avoid excessive price increases, and says Sandisk at 5x forward earnings looks cheap.
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