MU, SNDK, DRAM Fall Sharply From Record Highs: Korean Market Crashes 10% Crash On SK Hynix, Samsung Pullback

AI-linked stocks dropped in the U.S. premarket and across Asian markets on Tuesday.

• The Roundhill Memory ETF (DRAM) was down 13%, amid a broader selloff in U.S. markets.
• MU, SNDK, and DRAM closed at record highs on Monday.
• The retail sentiment from DRAM shifted to ‘bullish’ from ‘neutral.’

U.S. memory chip stocks tumbled from record highs in Tuesday’s premarket trading, caught in a broader tech selloff that began Monday and spilled over into Asian markets overnight.

SanDisk shares dropped 9.3%, while Micron stock declined 8.4%. Seagate and Western Digital shares declined over 7% each, and the Roundhill Memory ETF (DRAM) was down 13%.

South Korea’s Kospi closed 10% lower on Tuesday, with SK Hynix and Samsung Electronics both sliding more than 12%. At one point, the trading was suspended for 20 minutes, a measure to avoid a runaway slide in the market.

In fact, artificial intelligence-linked stocks tumbled across Japan and European markets.

SK Hynix, Samsung, and Micron are the top three holdings of DRAM. MU, SNDK, and DRAM closed at record highs on Monday.

Investor confidence in some of the market’s top-performing technology names showed signs of weakening in Monday’s U.S. session, as SpaceX shares declined and traders looked ahead to memory-chip maker Micron Technology’s earnings report due Wednesday.

S&P 500 and Nasdaq futures fell early Tuesday after a sell-off in tech giants dragged down the broad market index. After rallying sharply in recent months, memory stocks were the top focus for retail investors as they debated whether the premarket drops were a temporary blip or the start of a correction period.

Retail View On Memory Stocks

On Stocktwits, the retail sentiment from DRAM shifted to ‘bullish’ from ‘neutral,’ while that for WDC dipped to ‘bullish’ from ‘extremely bullish.’

The sentiment remained ‘bearish’ for MU, SNDK, and ‘bullish’ for STX.

“$SNDK Institutions and insiders are taking all the profits. $MU $DRAM,” said a trader.

Another wrote: “$SNDK these inflated memory names sucked the air out of more deserving AI names like NVDA…let’s just hope the memory crash doesn’t take down the legitimate AI plays with it.”`

The drop is not a crash, contended a trader. “$MU Kospi. It’s more sell the news / profit-taking after an extreme rally than a full crash,” they said.

Memory-chip stocks have surged over the past year on AI-driven demand for data centers. While companies and analysts still expect strong growth ahead, investors are increasingly debating how much of that optimism is already priced into shares and how much upside remains.

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