Memory Stocks Experience Sharp Decline Amid Technical Selloff
Shares of major memory and storage companies such as Seagate Technology (STX), Western Digital (WDC), SK Hynix ADR, and Micron Technology (MU) fell between 5% to 6% on Monday. The decline followed a sharp drop in Korean chipmaker stocks overnight, with the KOSPI index falling 5%, Samsung down 8%, and SK Hynix's local shares dropping 4%. Despite today’s pullback, these companies remain sharply higher year-to-date due to strong demand from AI-related memory cycles. Morgan Stanley attributed Monday’s selloff largely to technical factors such as leveraged ETF unwinding, hedge fund position adjustments, and retail margin calls. UBS initiated coverage of SK Hynix ADR with a Buy rating at $204 per share, while the firm also upgraded Korean stocks overall due to valuation support in key names like Samsung and SK Hynix. Valuations across memory companies vary significantly: Micron trades at 18.59x P/E, Seagate is highest at 61.73x, with Western Digital at 32.57x and SanDisk at 41.49x. The sector remains underpinned by strong demand for HBM, DDR5, NAND, and HDDs driven by hyperscaler capital expenditures.
Tickers: $MU $SKHYV $SNDK $STX $WDC
Topics: KOSPI_index memory_stocks stock_prices