Micron, SanDisk, AMD Shares Sink Up to 8% as Chip Stock Selloff Resumes

Micron Technology, SanDisk and AMD are among chipmakers that fell 8-13 percent. The decline is a reflection of Wall Street’s growing skepticism about semiconductor stocks following big year-to-year rallies and higher volatility in global markets.

Micron’s stock fell 7-13 percent from record highs and declined more than 325 percent earlier in the year. SanDisk fell 11-13 percent, its worst one-day drop since February on strong datacenter revenue. AMD lost up to 8%, too, for the entire semiconductor market. Western Digital, Marvell, Seagate, and Qualcomm both dropped 5-10 percent, showing the extent of the market shake-up.

The global triggers were a big part of the collapse. South Korea’s Kospi Index dropped nearly 10 percent and Samsung Electronics and SK Hynix dropped more than 12 percent. Trading was halted briefly to stop the crash, but the contagion effect soon hit the U.S. markets, particularly memory chip stocks that rely heavily on AI. Also adding to the pressure was a much hotter-than-expected U.S. inflation report that raised doubts about near-term rate cuts and could be putting pressure on high-growth tech stocks.

But the fundamentals are still strong. Micron had Q3 FY2026 revenue of $41.46 billion, up 346% year-on-year and a forecast of $50 billion for Q4. CEO Sanjay Mehrotra said memory is very much a strategic investment in the AI era and memory is very important for the future. SanDisk also came out on top with Q3 revenue of $5.95 billion and gross margins of 78% below target 80%. The decline is profit-taking from big rallies and not because fundamentals have deteriorated.

Industry experts have described the correction as a “gut-check moment” for AI-linked stocks. Mizuho and Jefferies, for instance, said investors were positioned in Asia, memory pricing and AI trades were tactical. The short-term volatility will continue, but the long-term business outlook is not too bad with strong AI demand, datacenter growth and strategic supply agreements in place.

It is clear that Micron, SanDisk and AMD’s sharp drop shows the danger of overheated rallies but also that the chips remain very strong. Investors can expect turbulence in the near term, but the fundamentals of the sector are strong and the semiconductor story is still strong.