SanDisk RSI Hits Record 99 on AI Bubble Fears, Robinhood Cuts 10% of Staff

Crypto News

SanDisk Corporation (NASDAQ: SNDK) has printed a monthly Relative Strength Index reading above 99, a level technical analysts say no publicly traded stock has ever reached. The extreme momentum follows a gain of more than 780% year-to-date in 2026 and over 5,400% since the company spun off from Western Digital in February 2025. SanDisk shares now trade near $2,138, far above their IPO price of roughly $38.50. The RSI runs from zero to 100, with readings over 70 flagging overbought conditions, so a print near its all-time high on the oscillator sits well beyond any framework most traders use to interpret risk.

The reading has reignited debate over whether the rally reflects durable demand or speculative excess. Bulls point to structural drivers: SanDisk became a pure-play NAND and solid-state drive maker, and hyperscaler AI infrastructure spending pulled enterprise SSD demand into a multi-quarter rally that lifted revenue 251% year-over-year. Skeptics counter that valuations have detached from fundamentals, drawing dot-com comparisons. Ray Dalio has separately warned that AI liquidity risks could force investors to liquidate paper gains when debt obligations come due. A comparable AI stock that surged past 5,100% eventually surrendered roughly 35% of its gains, a precedent that adds weight to bear market caution.

Trading platform Robinhood is cutting about 10% of its workforce, a reduction expected to affect roughly 290 of its approximately 2,900 full-time employees. CEO Vlad Tenev told staff the move flattens the company’s organizational structure, arguing Robinhood cannot default to a heavily-layered model if it wants to scale. A Form 8-K filed with regulators confirms the cuts also close a small number of open roles. The company estimates about $28 million in total restructuring charges, including roughly $20 million for severance and benefits and about $8 million in share-based compensation, with the costs recognized in the second quarter of 2026. The rationale echoes belt-tightening across fintech this year.

Despite the cuts, Tenev insisted the business has never been stronger, framing the reduction as a proactive step taken from a position of strength rather than distress. Robinhood pointed to June month-to-date average daily trading volumes at record levels across equities, options and prediction markets. The announcement did not cite artificial intelligence as the driver, but the company said it will keep hiring selectively, invest in top-tier talent and utilize frontier technologies to sharpen execution. For a venue where retail flow increasingly intersects with automated tools and the AI trading bot ecosystem, the efficiency push signals a leaner operating model ahead of the next volatility cycle.

Robinhood’s restructuring mirrors moves by major crypto firms that have linked layoffs this year to reducing management layers and improving efficiency. The company has simultaneously pursued expansion, entering the Canadian market after a $180 million acquisition that broadened its reach into regulated digital-asset trading. That dual track—trimming headcount while spending on growth and infrastructure—has become a common template across platforms serving both equities and the altcoin market. The contrast between record volumes and a 10% staff cut underscores how operators are prioritizing margin discipline even as activity climbs, positioning for an environment where execution speed matters more than organizational size.

Across digital assets, sentiment remains defensive. Bitcoin trades near $67,000 while Ether holds around $1,830, with majors absorbing the same risk-off pressure weighing on speculative tech equities. COINOTAG aggregate market data shows the Fear & Greed Index at 23 out of 100, firmly in Extreme Fear territory, and Bitcoin dominance elevated at 69.6%—a reading that historically reflects capital rotating out of higher-beta tokens toward the perceived safety of AMM-traded majors and Bitcoin. Total crypto market capitalization stands at roughly $1.92 trillion, leaving the broader complex consolidating as traders weigh whether the AI-driven equity surge can hold through the back half of 2026.

Viewed together, these developments trace a single arc: capital is concentrating into AI conviction while operators brace for the comedown. SanDisk’s record oscillator print and Robinhood’s simultaneous cuts and record volumes reflect the same tension between euphoric demand and disciplined risk management. COINOTAG’s own aggregate data sharpens the picture—an Extreme Fear reading of 23 and 69.6% Bitcoin dominance point to defensive positioning, even as $1.92 trillion in market cap signals capital is parked, not fleeing. The SEC filings and corporate disclosures underpinning these events confirm the numbers are structural, not narrative. Should hyperscaler capex commitments waver, the unwind in overbought AI names could ripple quickly into crypto’s higher-beta corners.