The AI Memory Boom Isn’t Over. Investors Are Just Pricing It Like It Is

3 weeks ago 18

Rich Duprey

Thu, August 6, 2026 astatine 8:35 AM CDT 5 min read

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Memory stocks are cratering contempt grounds results. SK Hynix posted 257% gross maturation and 557% nett maturation yet inactive fell 7%.
Micron dropped 32% and Sandisk fell 10% aft grounds quarters, arsenic investors present request guidance signaling exponential maturation beyond a beat-and-raise.
HBM capableness takes years to physique portion AI hardware request keeps rising, giving representation suppliers a longer runway than existent valuations suggest.
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Artificial quality has transformed the semiconductor manufacture into a crippled of bottlenecks. First it was GPUs. Then networking. Today, representation has go 1 of the industry's biggest choke points, with high-bandwidth representation (HBM) successful peculiarly abbreviated supply.

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Just months ago, investors couldn't bargain representation stocks accelerated enough, pushing companies similar SK Hynix (NASDAQ:SKHY), Micron Technology (NASDAQ:MU), and Sandisk (NASDAQ:SNDK) to grounds highs arsenic AI spending accelerated. Now the temper has flipped. Despite 1 grounds 4th aft another, investors person decided that simply beating expectations is nary longer capable -- and that displacement successful science is driving today's sell-off much than thing happening wrong the companies themselves.

Expectations Have Outrun Outstanding Results

The numbers themselves don't suggest an manufacture successful trouble.

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At the extremity of July, SK Hynix generated the strongest fiscal results successful its history, with gross climbing 257% twelvemonth implicit twelvemonth portion operating nett surged 557%. Yet the banal has continued falling and is down different 8.6% astatine the marketplace unfastened today.
Micron experienced the aforesaid attraction earlier this summer. The institution delivered grounds quarterly gross successful June portion raising guidance supra Wall Street expectations. Instead of rewarding the performance, investors person pushed the banal down astir 32% since then.
Sandisk told a akin communicative yesterday. The flash representation specializer reported a grounds 4th yesterday, but the banal is plunging 12% this morning.

Investors aren't selling due to the fact that net are weak. They're selling due to the fact that their expectations ran acold up of the results.

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Profits are soaring, yet stocks are plummeting. Discover wherefore the AI representation rhythm is punishing investors adjacent arsenic companies deed grounds highs. © 24/7 Wall St.

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