Memory chip stocks including Micron Technology, SanDisk Corp, Seagate Technology Holdings, and Western Digital Corp extended declines in overnight trading on Wednesday after sharp selloffs during the regular session. The stocks dropped as investors booked profits following a recent rally and institutional funds rebalanced portfolios at the start of the year's second half. The selloff occurred despite positive catalysts including a Bank of America price target increase for SanDisk and U.S. President Donald Trump praising Micron's contribution to Trump Accounts.
Memory Stocks Record Double-Digit Declines on Wednesday
Shares of Micron Technology and SanDisk Corp fell approximately 10.6% each on Wednesday and dipped under 1% in the extended session. Western Digital Corp and Seagate Technology Holdings closed lower by 6.3% and 5.2% respectively. The Roundhill Memory ETF (DRAM) dropped 10.8% and then another 1.4% in the after-market session.
Micron shares are down over 16% from their June 25 peaks, while SanDisk shares are down 13% from the same date.
Bank of America Raises SanDisk Price Target to $2,500
Bank of America on Wednesday raised its price target on SanDisk to $2,500 from $2,100 and kept a 'Buy' rating. The research firm said it expects a supply/demand imbalance in the NAND market to persist through calendar 2027 and that pricing will remain "strong for longer" through mid-2027, though it will grow at a lower quarter-over-quarter rate over time.
Trump Praises Micron's $250 Million Trump Accounts Contribution
On Wednesday, Trump praised Micron and its CEO Sanjay Mehrotra for their contribution to Trump Accounts. "Micron, a truly GREAT American Company, and one of the 'HOTTEST' anywhere in the World, has announced a HISTORIC $250 MILLION Investment in TRUMP ACCOUNTS. This incredible gesture, made by Micron's fantastic CEO, Sanjay Mehrotra, will make many children extremely happy some day in the not too distant future," Trump wrote in a Truth Social post.
"Micron is proud to be part of this historic initiative, which complements our over $200 billion investment in U.S. memory manufacturing and R&D, creating over 90,000 jobs across the country," Mehrotra said in a reply on X.
Retail Traders Maintain Bullish Sentiment on Stocktwits
On Stocktwits, retail sentiment remained 'bullish' for DRAM, MU, SNDK, and WDC, and 'neutral' for STX. "$MU Seems like the 'oversupply' story always pops up. Complete BS. Rivian can't get memory chips. Apple raising prices. We went from $470 to $310 last earnings. A 35% decline. This is 20% (so far). Just grab your b**** and come back after the weekend. Nothing has changed," said a trader.
Another trader wrote: "$DRAM not what I want to see but I still believe in it long term. This should easily be $100 by few months."
Investors are watching SK Hynix's upcoming Nasdaq listing amid the selloff. "$DRAM would like to hear people's opinion on whether this drop is an orchestrated one because of SKs offering next Friday and the pricing of it?" a trader questioned.
FAQ
What caused memory chip stocks to fall on Wednesday?
Memory chip stocks fell as investors booked profits after a recent rally and institutional funds rebalanced their portfolios at the start of the year's second half. The selloff occurred despite the absence of any clear fundamental trigger.
How much did Micron and SanDisk stocks decline?
Micron Technology and SanDisk Corp shares each fell approximately 10.6% on Wednesday and continued to dip under 1% in overnight trading. Micron shares are now down over 16% from their June 25 peaks, while SanDisk shares are down 13% from the same date.
What is Bank of America's price target for SanDisk?
Bank of America raised its price target on SanDisk to $2,500 from $2,100 on Wednesday and maintained a 'Buy' rating, citing expectations of a supply/demand imbalance in the NAND market persisting through calendar 2027.
