Shares of major memory and storage companies came under heavy selling pressure as investors reacted to growing concerns that a surge in chip production could outpace demand, raising the risk of a memory market oversupply.
SanDisk led the decline, falling 14.13% over the past 24 hours. Seagate dropped 10.38%, while Micron lost 5.49% during the same period. The weakness extends beyond a single trading session, with the three companies down 19.59%, 17.54%, and 14.36%, respectively, over the last five trading days, giving back a portion of their strong gains from earlier in 2026.
Investor sentiment has been pressured by expectations that increased memory output from industry giants Samsung and SK Hynix could create excess supply, particularly if demand growth from artificial intelligence infrastructure begins to moderate.
Adding to the cautious outlook, Morningstar Research Director Lorraine Tan told Bloomberg TV that AI-related stocks may still face another 20% to 30% correction before presenting attractive buying opportunities. She pointed to expanding memory production and signs that AI capital spending could be approaching a plateau after an extended period of rapid growth.
The latest selloff reflects a broader shift in market expectations, with investors reassessing whether the explosive AI-driven demand that fueled semiconductor stocks can continue absorbing the industry's expanding production capacity in the months ahead.#SNDK
