SanDisk and Micron Falls 9%, Western Digital Drops 8% as Memory Supercycle Trade Hits Pause Button
SanDisk, Micron Technology, and Western Digital stocks fell 8-9% in midday trading on Tuesday, reversing a 9% rally from the prior session, as profit-taking hit the AI-driven memory sector. Despite strong fundamentals—including record earnings and AI-driven demand—shares showed volatility, with SanDisk leading the decline after a 65% surge in the past month and year-to-date gains of 552% for the company.
Shares of SanDisk, Micron Technology, and Western Digital dropped 8-9% in midday trading on Tuesday, reversing a 9% sector-wide rally from Friday. SanDisk fell to $1,405, Micron to $724, and Western Digital to $476, marking a coordinated pullback in the memory and storage sector driven by profit-taking after a parabolic run. The three companies have surged dramatically this year, with SanDisk up 552% year-to-date, Western Digital up 200%, and Micron up 179%. Over the past 12 months, SanDisk shares climbed 3,299%, Western Digital 921%, and Micron 684%, reflecting extreme momentum. SanDisk alone has rallied 65% in the past month, peaking at $1,547.56 on Monday, before today’s sharp correction. Fundamentals remain strong across the board. SanDisk’s Q3 FY2026 earnings showed EPS of $23.41 (beating estimates by $8.75) and revenue of $5.95 billion, up 251% year-over-year, with datacenter demand surging 645%. Micron reported Q1 FY2026 non-GAAP EPS of $4.78 on $13.64 billion revenue, with cloud memory revenue nearly doubling to $5.28 billion. Western Digital beat expectations with non-GAAP EPS of $2.72 and raised its dividend by 20%, while gross margins crossed 50% for the first time. Retail investor sentiment shifted abruptly, with Reddit discussions on SanDisk turning bearish after a bullish Friday. Micron’s Reddit thread saw debate over market timing, while Western Digital sentiment remained relatively stable. Analysts note that tight supply and AI-driven hyperscaler spending continue to support the long-term bull case for memory stocks, despite short-term volatility. The sector’s ability to swing sharply in both directions suggests traders are watching support levels closely. SanDisk’s ability to hold above recent lows and Micron’s stability ahead of its next earnings update will be key indicators for the next move. The memory complex remains tightly correlated, with all three stocks reacting as a single thematic unit tied to AI demand.
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