Micron, SanDisk, and Seagate drop over 7% premarket amid China’s DUV lithography threat and NVIDIA’s $750B financing concerns.
Micron Technology (MU), SanDisk (SNDK), and Seagate (STX) fell more than 7% in premarket trading Tuesday, extending losses after Samsung and SK Hynix plunged 13-15% overnight in Asia. Nasdaq futures declined over 1% ahead of the open.
The selloff is driven by reports that China is developing deep ultraviolet (DUV) lithography machines, potentially flooding global markets with semiconductor capacity. Additionally, concerns over NVIDIA’s $750 billion financing plans tied to OpenAI and SK Hynix have stoked fears of circular financing risks in the AI sector.
Western Digital (WDC) also dropped 7.6%, while SK Hynix’s US ADR (SKHY) fell 5.6% in sympathy. The memory pricing cycle, a key driver for these stocks, faces renewed pressure from oversupply risks.