Micron and Sandisk shares drop 24% and 38% respectively over the past month despite strong AI-fueled memory chip demand.
Micron Technology (MU) and Sandisk (SNDK) have seen sharp declines in their stock prices, falling 24% and 38% over the past month, despite a robust memory chip market. The pullback follows extraordinary gains of 728% for Micron and over 3,200% for Sandisk in the past year, driven by surging demand for AI-related memory chips in data centers.
Memory chip prices have surged sixfold over the past year, with demand significantly outpacing supply. Analysts, including those at Morgan Stanley, expect the supply crunch to persist beyond 2030, sustaining high prices. SK Hynix recently echoed these concerns, forecasting continued demand-supply imbalances.
The recent stock declines may present a buying opportunity, as the long-term outlook for memory chips remains strong due to AI-driven growth and limited supply expansion.