Appaloosa Management completely exited its position in SanDisk Corp (NASDAQ: SNDK) during the second quarter. The fund sold its entire holding of 281,250 shares as the memory-chip maker’s stock delivered a historic rally.

The filing reflects holdings as of June 30 and does not disclose the exact timing of the sales within the quarter. SanDisk shares climbed more than 200% during the period, driven by surging demand for AI-related memory chips. This performance marked the company’s strongest quarterly gain on record.

Post-Rally Correction

Shares reached an all-time high of roughly $2,350 in late June before reversing course. Since that peak, SanDisk stock has fallen more than 30%. While the 13F filing confirms the exit occurred before this correction unfolded, it does not indicate whether Tepper sold near the beginning, middle, or end of the rally.

Portfolio Discipline

The move highlights a focus on risk management after extraordinary gains rather than maximizing every dollar of upside. Appaloosa also reduced its position in Micron Technology Inc (NASDAQ: MU) by about 41% during the same quarter, suggesting selective trimming of exposure to a sector with exceptional recent performance.

What the Numbers Show

The divergence between SanDisk’s quarterly performance and its post-quarter trajectory is stark. The stock gained over 200% during the quarter when Appaloosa exited, yet it has since declined more than 30% from its late-June peak. This pattern underscores how quickly sentiment can reverse following a near-vertical ascent, even as the underlying business case for AI memory demand remains intact.

SanDisk Corporation (NASDAQ: SNDK) shares fell 1.54% to $1,542.61 in early Tuesday trading as investors weighed potential semiconductor tariffs against a bullish long-term outlook from Mizuho.

Tariff Uncertainty Pressures Chip-Linked Stocks

The Trump administration is reportedly considering new semiconductor tariffs that could extend to products containing chips, including laptops, gaming consoles, and data center servers. Commerce Secretary Howard Lutnick supports linking tariff relief for foreign companies to investments in U.S. chip production.

The White House pushed back on the reports, stating that tariff speculation should be treated as "baseless speculation" unless officially announced. It reiterated its focus on reshoring critical manufacturing through a "nimble, nuanced, and multi-faceted approach." Potential tariffs have raised concerns about higher end-product costs and added uncertainty across hardware and data-center supply chains tied to AI infrastructure.

Mizuho Stays Bullish On SanDisk

Mizuho maintained an Outperform rating on SanDisk while trimming its price forecast to $1,875 from $1,900. The firm expects SanDisk’s earnings to grow fivefold between fiscal 2026 and fiscal 2028 as tight memory supply supports the broader industry outlook.

Mizuho also sees potential for SanDisk to repurchase 25% to 30% of its outstanding shares using an estimated $30 billion-$50 billion in free cash flow during 2027 and 2028. Nicholas Mugalli, founder and CEO of World Trade Securities, highlighted Mizuho’s outlook and said SanDisk remains undervalued despite its strong stock performance.

What the Numbers Show

The divergence between short-term price action and long-term analyst projections highlights the market's current risk appetite. While the stock faced immediate downward pressure of 1.54% due to macro-level tariff fears, Mizuho’s price target of $1,875 implies a significant upside from the current level of $1,542.61. This suggests analysts view the tariff concerns as transient noise against a backdrop of structural supply tightness and substantial capital return potential.

Top ETF Exposure

SanDisk carries heavy weight in several major ETFs, meaning inflows or outflows for these funds will likely force automatic buying or selling of the stock.