Memory Chip Stocks Decline as Wall Street Warns of AI-Driven Rally Peak

Stock News07-24 21:48

A broad selloff hit memory chip stocks on Friday, with multiple industry leaders experiencing significant declines.

SanDisk Corp. (SNDK) shares fell more than 4%, while SK hynix also dropped over 4%. Micron Technology (MU) and Western Digital (WDC) each declined more than 3%, and Seagate Technology fell over 2%.

On July 21, Morgan Stanley analyst Shawn Kim released a report cautioning that the AI-driven euphoria in the storage sector is approaching an inflection point. The report predicts that memory contract prices are likely to peak in the fourth quarter. This bearish assessment has been identified as a catalyst for the sharp sell-off in South Korean semiconductor stocks.

Investors are reacting to the warning, suggesting that the rapid price increases seen in the memory market may not be sustainable. The analyst's view signals a potential shift in market sentiment from the recent AI-led rally.

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