Micron, SanDisk, and Western Digital Sink 7% as Samsung Earnings Spark a Memory Selloff

Memory and retention stocks are selling disconnected sharply successful aboriginal trading Tuesday, reversing Monday's rebound. Micron Technology (NASDAQ:MU) shares are down 7% to $917, SanDisk (NASDAQ:SNDK) banal is disconnected 7% to $1,616, and Western Digital (NASDAQ:WDC) shares are dropping 7% to $537.

The selling extends crossed the group. Seagate Technology (NASDAQ:STX) banal is down 5% to $822, and the Roundhill Memory ETF (CBOE:DRAM) is trading 6% little astatine $61. The moves are chip-specific, and the Dow is really successful the greenish Tuesday morning.

Samsung's Record Beat Sparks a Paradoxical Selloff

The catalyst is Samsung Electronics. The Korean elephantine reported a preliminary Q2 operating nett of astir $58 billion, a 19-fold leap from a twelvemonth earlier that exceeded expert estimates. Despite the grounds print, Samsung shares fell 7%, and arsenic overmuch arsenic 10% intraday successful Seoul.

The absorption reflects profit-taking aft Samsung banal surged 150% this year, and Deutsche Bank flagged that results were "only" 6% up of estimates. The bigger interest is astir whether semiconductor and AI-adjacent companies tin prolong these margins going forward. SK Hynix besides traded little successful Asia, and that overhang has followed the portion into U.S. representation names.

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Peers Follow the Move After a Historic Run

The selloff hits a radical that has been the year's runaway trade. Micron banal was up 245% twelvemonth to day (YTD) heading into today's session, with the guardant P/E ratio astatine 7x against a trailing P/E ratio of 22x. Micron's fiscal Q3 2026 people delivered gross of $41.46 billion, up 346% twelvemonth implicit twelvemonth (YoY), with non-GAAP gross borderline of 85%.

SanDisk banal had climbed 635% YTD, and Western Digital shares were up 235% YTD. Meanwhile, Seagate banal had risen 216% YTD. Those gains explicate the sensitivity: immoderate hint of request fatigue lands hard connected richly priced names. Samsung, SK Hynix, and Micron each topped $1 trillion successful marketplace worth successful May earlier pulling back.