Cathie Wood, the ARK Invest cofounder, has warned that Chinese rivals could turn the memory chip boom into a bust. "The trend is up, but the cycles are vicious," she told investors in Hong Kong. Memory stocks fell, and Sandisk dropped sharply. Sandisk shares have gained about 1,000% in a year, driven by AI data centres' demand for NAND flash memory. The company reported fourth-quarter revenue of $8.97 billion, up 372% year over year and above estimates of $8.48 billion. Wood says state-backed ChangXin Memory Technologies is expanding DRAM output, which could flood the market. Chinese makers still lag in advanced NAND technology. Sandisk reports first-quarter 2027 earnings on October 29. It guided revenue of $10.3 billion to $10.8 billion.

Sandisk (NASDAQ: SNDK) shares could nearly triple to $4,128 within a year if demand for storage and memory keeps outpacing supply, according to one analysis. The stock trades at $1,416 and is up about 497% this year as of October 13, 2026. Revenue rose 51% quarter over quarter to $9 billion in the fiscal fourth quarter. Sandisk expects revenue of $10.3 billion to $10.8 billion in the next quarter, with adjusted earnings per share of $44 to $46. Data center storage grew from about 12% of bits shipped to 38% over the past year. Long-term agreements with eight customers should cover more than half of bits shipped in fiscal 2027. The $4,128 target applies the current price-to-earnings multiple of 19.2 to the $215 consensus fiscal 2027 earnings estimate. A lower multiple, from fears of a pricing downturn or an AI spending stall, would cut the upside.

Cathie Wood, founder and chief executive officer of ARK Invest, said memory chip demand is rising but the cycles are "vicious." Speaking to investors in Hong Kong on October 13, she said more competitors, especially from China, would increase volatility. Micron shares have risen 385% over the past year and SanDisk shares nearly 965%. Both have fallen sharply in the past week. Micron's non-GAAP gross margin hit 87.0% in fiscal Q4 2026, up from 45.7% a year earlier. To blunt a downturn, it signed 26 customer agreements backed by $32 billion in commitments. SanDisk's agreements carry $16.5 billion in financial guarantees. State-backed CXMT plans server-grade DDR5 chips before the end of 2026, though large-scale output is unproven.