The sharp selloff in high-flying memory stocks, without any clear fundamental trigger, has concerned investors, fueling fears of a broader downturn.
- Micron and SanDisk shares fell about 10.6% each on Wednesday and dropped further in overnight trading.
- BofA raised its price target on SNDK to $2,500 from $2,100, while President Donald Trump praised Micron's contribution to the Trump Accounts scheme.
- On Stocktwits, retail sentiment remained ‘bullish’ for DRAM, MU, SNDK, and WDC, and ‘neutral’ for STX.
Memory chip stocks continued to drop in overnight trading after sharp declines on Wednesday as investors booked profits after the recent rally and institutional funds rebalanced their portfolios at the start of the year’s second half.
Shares of Micron Technology, SanDisk Corp, Seagate Technology Holdings, and Western Digital Corp dipped under 1% in the extended session. MU and SNDK stocks fell about 10.6% apiece earlier, while WDC and STX closed lower by 6.3% and 5.2%, respectively. The Roundhill Memory ETF (DRAM) dropped 10.8% and then another 1.4% in the after-market session.
The sharp selloff in high-flying memory stocks – despite the absence of any clear fundamental trigger – has rattled investors, fueling debate over whether it marks the beginning of a broader downturn.
Even positive markers like an analyst price target hike for SanDisk and U.S. President Donald Trump praising Micron’s contribution to Trump Accounts failed to lift the stocks.
Retail View On Memory Stocks
Still, retail traders’ bullish view that memory stock would continue to shine appeared to hold up for now.
On Stocktwits, retail sentiment remained ‘bullish’ for DRAM, MU, SNDK, and WDC, and ‘neutral’ for STX.
“$MU Seems like the ‘oversupply’ story always pops up. Complete BS. Rivian can’t get memory chips. Apple raising prices. We went from $470 to $310 last earnings. A 35% decline. This is 20% (so far). Just grab your b**** and come back after the weekend. Nothing has changed,” said a trader.
Another trader wrote: “$DRAM not what I want to see but I still believe in it long term. This should easily be $100 by few months.”
Analysts and companies have consistently maintained that memory demand will remain strong for the next several years. Even so, signs that the sector’s blistering rally may be cooling have emerged as a growing concern for investors.
Micron shares are now down over 16%, and SanDisk shares are down 13% from their June 25 peaks.
Recent Memory Catalysts
Bank of America on Wednesday raised its price target on SanDisk to $2,500 from $2,100 and kept a ‘Buy’ rating. The research firm said it expects a supply/demand imbalance in the NAND market to persist through calendar 2027 and that pricing will remain "strong for longer" through mid-2027, though it will grow at a lower quarter-over-quarter rate over time, the analyst tells investors.
Investors are also watching SK Hynix’s upcoming Nasdaq listing amid the selloff. “$DRAM would like to hear people’s opinion on whether this drop is an orchestrated one because of SKs offering next Friday and the pricing of it?” a trader questioned.
Donald Trump Pumps MU
On Wednesday, Trump praised Micron and its CEO Sanjay Mehrotra for their contribution to Trump Accounts.
“Micron, a truly GREAT American Company, and one of the “HOTTEST” anywhere in the World, has announced a HISTORIC $250 MILLION Investment in TRUMP ACCOUNTS. This incredible gesture, made by Micron’s fantastic CEO, Sanjay Mehrotra, will make many children extremely happy some day in the not too distant future,” Trump wrote in a Truth Social post.
“Micron is proud to be part of this historic initiative, which complements our over $200 billion investment in U.S. memory manufacturing and R&D, creating over 90,000 jobs across the country,” Mehrotra said in a reply on X.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
