SanDisk and Micron Drop Amid Memory Sector Selloff; SK Hynix Capex Plan Sparks Concerns
Memory stocks are under pressure as SanDisk (NASDAQ:SNDK) fell 7% to $1,019 and Micron Technology (NASDAQ:MU) dropped 6% to $775. The selloff was triggered by SK Hynix's plan to increase its 2026 capital expenditure by 50%, reaching at least $31 billion—despite the company reporting a record operating margin of 76%. This raised concerns about an overheating AI capex cycle and potential oversupply in memory markets. The Philadelphia Semiconductor Index is down nearly 19% this month, on track for its worst performance since 2008. The Roundhill Memory ETF (CBOE:DRAM) has also fallen sharply by 4%. In contrast, Seagate Technology (NASDAQ:STX), which focuses more on hard disk drives than NAND/DRAM memory, bucked the trend with a 1% gain following better-than-expected Q4 earnings. Market participants are closely watching whether SanDisk can hold above $1,000 and how broader macroeconomic factors—such as Fed rate hikes and geopolitical tensions—affect investor sentiment in this volatile sector.
Tickers: $MU $SKHYV $SNDK $STX
Topics: capex_announcement memory_stocks Semiconductor_Index SK_Hynix