SanDisk Corp. (SNDK) shares tumbled 5.02% during intraday trading on Wednesday, as investors grew increasingly cautious ahead of the company's highly anticipated fiscal fourth-quarter earnings report, scheduled for release after the market close.

The decline reflects mounting nervousness on Wall Street, where consensus estimates have climbed well above the company's own guidance. Analysts are projecting adjusted earnings of approximately $34.45 per share on revenue of $8.39 billion, with some institutions setting the bar as high as $34.80 per share—both above the official guidance range of $30 to $33 per share. This aggressive positioning has raised fears of a potential "high expectations trap," where even solid results could trigger a selloff if they fail to clear the elevated bar.

The drop also comes on the heels of a brutal July for the stock, during which SanDisk lost roughly 47% of its value amid a broader rotation out of high-flying AI and memory chip names. While the company's long-term fundamentals remain supported by booming AI infrastructure demand and durable NAND pricing, the pre-earnings volatility underscores the market's sensitivity to any sign that the memory supercycle may be peaking. Options markets had priced in a roughly 14% post-earnings swing, reflecting the elevated uncertainty heading into the report.