SanDisk Sinks 7%, Micron Slides 6% as Memory Selloff Intensifies; Seagate Bucks the Trend

Memory stocks are getting hammered midday Wednesday arsenic a sector-wide rout intensifies. SanDisk (NASDAQ:SNDK) is starring the mode lower, with SanDisk shares down 7% to $1,019. Micron Technology (NASDAQ:MU) banal is down 6% to $775, and the Roundhill Memory ETF (CBOE:DRAM) is besides little by 4% to $46.

The determination caps a brutal agelong for the group. SanDisk shares are down 36% implicit 5 days. SK Hynix's (NASDAQ:SKHY) U.S.-listed ADR is down 2% astatine $128 aft its ain steep slide.

SK Hynix Report and Capex Shock Fuel the Selloff

The trigger is SK Hynix's Q2 report. The Korean representation elephantine delivered a grounds operating profit, up 557% twelvemonth implicit twelvemonth (YoY) with a grounds operating borderline of 76%, but the people inactive missed lofty expectations. More important, SK Hynix guided to assistance 2026 capex by 50% to astatine slightest $31 billion, stoking fears the AI capex rhythm is overheating.

Barclays chopped its terms people connected SK Hynix shares to $300 from $330 portion keeping an Overweight rating. SKHY lone began trading successful New York connected July 10 successful the largest-ever U.S. IPO by a overseas company, and the ADR is already down 23% since listing. Morningstar's William Kerwin has called SanDisk's NAND roar "tremendous, but finite," keeping a $1,000 terms people and a "Very High" uncertainty rating.

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Sector Rout Broadens Beyond Memory

The downturn isn't isolated. The Philadelphia Semiconductor Index is down 19% successful July, connected way for its worst period since 2008, with each its members beneath their 50-day moving averages. A beardown Shanghai debut from Chinese representation shaper CXMT reignited oversupply concerns conscionable arsenic Fed rate-hike worries and U.S.-Iran tensions adhd risk-off pressure.

The DRAM ETF sits astatine the halfway of the storm. The Roundhill Memory ETF has fallen 20% implicit the past 5 sessions. Its apical holdings see Samsung Electronics astatine 24.99%, SK Hynix astatine 24.22%, and Micron astatine 23.83%, giving the money a highly concentrated, volatile profile.