SanDisk Corp. (SNDK) shares plummeted 13.21% in intraday trading on Thursday, extending a sharp sell-off that began in the pre-market session. The decline came despite the memory-chip maker reporting fiscal fourth-quarter results that comfortably exceeded Wall Street estimates, as investors focused instead on a forward revenue outlook that fell short of elevated expectations.

For the fourth quarter, SanDisk reported adjusted earnings of $39.25 per share on revenue of $8.97 billion, both well above analyst consensus. The company also announced a $14 billion expansion of its share buyback program. However, the company guided for fiscal first-quarter revenue between $10.3 billion and $10.8 billion, with the midpoint of $10.55 billion coming in below the $10.82 billion that analysts had been modeling. The adjusted earnings per share guidance of $44 to $46 was also roughly in line with or slightly below the consensus.

The market reaction underscores the lofty bar set for AI-linked stocks after this year's massive rallies. SanDisk's stock had surged over 400% in the past year, meaning that even record-breaking performance was not enough to satisfy investors looking for continued acceleration. The disappointing forecast triggered a broad sell-off in memory stocks, dragging down peers such as Western Digital and Micron Technology.