Take Profits Now. Famous Chart Technician Says SanDisk is The “Most Overbought Stock Ever”

The post Take Profits Now. Famous Chart Technician Says SanDisk is The “Most Overbought Stock Ever” appeared first on 24/7 Wall St..

Carter Worth, the founder of Worth Charting and a regular on CNBC’s Closing Bell, told viewers this week that the memory chip trade has gone too far, too fast. His call: trim, reduce, or hedge memory exposure now, before the market makes the decision for you. The bullseye of his warning was SanDisk (NASDAQ:SNDK), which he labeled the “most overbought stock ever” after the shares printed a fresh all-time high.

Worth’s Setup: A $4.4 Trillion Memory Basket

To frame just how extreme the move has become, Worth constructed an equal-weight basket of the six largest memory stocks totaling $4.4 trillion in market capitalization, the same size as Apple. He then walked viewers through the chart history: a sideways grind through 2021-2023, two ugly drawdowns of 39% and 37%, and then a vertical surge of 1,375%. He characterized the recent leg as “an aggressive and epic repricing of an asset class” and argued the group is dangerously extended above its 150-day moving average.

The SanDisk chart bears this out. The stock closed Tuesday at $1,991.55, putting it up 738.97% year to date and a staggering 4,404.75% over the past 12 months. The 150-day simple moving average sits at $748.25, leaving the stock trading well above the trend line Worth referenced. The upper Bollinger Band has stretched to $2,069.04, the widest in the dataset, a sign of accelerating volatility expansion.

The Micron Tell

Worth singled out Micron Technology (NASDAQ:MU) as the canary. He pointed to an intraday reversal where the stock printed a new high and closed poorly, calling it “you’ve lost your grip on the bar” and an “exhausted type move”. Closing weak after fresh highs, he said, is “not nothing.” Micron has rallied 753.84% over the past year, and even though its 14-day RSI has cooled to 60.48 from extreme readings above 80 in early June, the chart structure he flagged is the kind of distribution signature that often precedes a meaningful drawdown.

Worth’s projected reversion: a 15 to 20% pullback back toward trend across the memory complex.

Fundamentals Are Real, but Valuation Is “A Terrible Timing Tool”

The bull case for SanDisk is real. Q3 FY26 results were a blowout: non-GAAP EPS of $23.41 versus a $14.34 consensus and revenue of $5.95 billion against $4.7 billion expected, with gross margin landing at 78.4%. CEO David Goeckeler called it “a fundamental inflection point” tied to multi-year customer agreements and a zero-debt balance sheet (see the 8-K press release). Q4 guidance is for $30.00-$33.00 in non-GAAP EPS.

And yet, Worth’s broader point about the SOXX semiconductor index was that “a lot of money has been pushed in over the past 12 months” and “valuation is a terrible timing tool.” SanDisk now trades at a trailing P/E of 68 with the Wall Street mean target sitting at $1,751.32, below the current quote. Insider activity has tilted toward sales: the Chief Legal Officer sold 600 shares at $1,736 on June 3 and the EVP/CTO sold 2,000 shares at roughly $1,755-$1,758 on June 1.

What to Watch Next

The peer group tells the same story Worth sketched. Western Digital (NASDAQ:WDC) has rallied 1,089.5% over the past year, while NVIDIA (NASDAQ:NVDA), the original AI infrastructure proxy, is up a comparatively modest 43.54% over the same window with its RSI sitting at a neutral 47.48. The dispersion between memory and the rest of semis is exactly what Worth is flagging.

Investors building positions here should weigh the structural NAND upcycle against the technical reality Worth laid out: a basket of memory names rivaling Apple in size, stretched far above trend, with the leading name showing the textbook signs of an exhaustion top. Reversion only requires the buying to pause.

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