Micron, Sandisk Sink 26% and 40% on AI Overbuild Fears
Updated
Updated · The Motley Fool · Jul 20
Micron, Sandisk Sink 26% and 40% on AI Overbuild Fears
3 articles · Updated · The Motley Fool · Jul 20
Summary
Micron has dropped 26% and Sandisk 40% since July after huge first-half rallies reversed on fears AI data-center capacity is being overbuilt.
Those worries hit memory-chip names hardest because Micron and Sandisk depend on DRAM and NAND pricing, which surged as AI infrastructure demand created a supply bottleneck.
Micron management has said memory-market tightness should persist beyond 2027, undercutting the view that the AI build-out is nearing a glut.
Even after gains of 304% for Micron and 858% for Sandisk in the first six months, both trade below the S&P 500's 21.5 forward P/E—at 11.6 and 6.4 respectively.
The selloff fits a broader AI-chip retreat that has pushed semiconductor shares into bear-market territory as investors reassess AI spending durability.