SanDisk Corp (NASDAQ:SNDK) is in the crosshairs of Andrew Left’s Citron Research, which on Tuesday announced a short position in the memory storage company.
They argued that the NAND cycle is approaching a peak just as Samsung Electronics Co Ltd (OTCPK: SSNLF) escalates competition in the premium Solid-State Drive segment.
Citron Flags Western Digital’s Exit As A Warning Sign
In its note, Citron pointed to a significant move by SanDisk’s former parent, Western Digital Corp (NASDAQ:WDC), as a key tell.
Western Digital sold a substantial chunk of its SNDK holdings, roughly 25% below current prices, in a secondary offering earlier this month. “Ask yourself why,” Citron wrote. “Because they know the cycle is approaching a peak, and they’re not waiting for the bell.”
Samsung Seen As The Decisive Threat
Citron’s core bear case centers on Samsung’s competitive posture. “Samsung has a 30-year history of choosing market share over margins,” Citron wrote. “They wait for pure-plays like SanDisk to get comfortable at 50% gross margins, then flip the switch.” The firm added that Samsung has publicly stated it won’t sell below 50% margins and is moving its best chips directly into the premium SSD market.
‘Supply Mirage’ Could Vanish Quickly
Citron characterized the current memory tightness as illusory, arguing that Samsung’s temporary yield problems in another product line have artificially constrained supply. “With double the capacity of the 2018 peak waiting in the wings, this ‘shortage’ is a supply mirage that can vanish in a single earnings call,” the firm warned.
The note also pushed back on comparisons to NVIDIA Corp (NASDAQ:NVDA): “The market is pricing SanDisk like it’s $NVDA. There’s one problem: NVIDIA has a moat. SanDisk sells a commodity.”
The broader memory market has seen acute price pressure. Analyst firms including Counterpoint Research reported DRAM price surges of 40–50% in fourth-quarter of 2025, with TrendForce warning that increases of 50% or more are becoming the base case.
Citron’s Track Record And Left’s Background
Left, dubbed “The Bounty Hunter of Wall Street” by The New York Times in 2017, built his reputation on high-profile short calls including Valeant Pharmaceuticals, GameStop, and most recently Palantir and several quantum computing firms in 2025.
SNDK Price Action: SanDisk shares were down 1.46% at $681.90 at the time of publication on Tuesday. The stock is approaching its 52-week high of $725.00, according to Benzinga Pro data.
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