SanDisk Leads Memory Stocks Lower: A Look Inside the Rout
SanDisk plunged nearly 20% as AI and memory stocks sold off after election results raised fears of data-center delays and weaker chip demand.
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MUZ ETF surges over 25% as Micron tumbles. Bullish technical indicators had signaled building momentum, but can the leveraged trade sustain its rally?
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SanDisk plunged nearly 20% as AI and memory stocks sold off after election results raised fears of data-center delays and weaker chip demand.
Ten U.S. tech giants erased about $1.74 trillion in market value Thursday as Nvidia, Micron and AMD led a post-midterm sell-off in AI and chip stocks.
Nvidia, Micron and eight other AI stocks fell below their 200-day moving average this week as the midterm vote hit AI spending bets.
Micron stock has declined nearly 30% over six trading days amid concerns about Chinese competition. Chinese chipmaker CXMT announced $1 billion in DRAM prepayments and is developing high-bandwidth memory (HBM) chips. However, CXMT faces significant challenges with only 20-30% yield rates on next-generation HBM3E products, suggesting limited near-term threat to Micron's market position where SK Hynix currently dominates.
Sandisk (NASDAQ: SNDK) fell almost 8% premarket as post-midterm tech rotation hit memory chips, leaving analysts divided over further downside or a year-end rally.
Micron fell below its 200-day moving average Thursday for the first time since May 2025, extending a 24% weekly drop in memory stocks.