A global risk-off wave triggered a sharp sell-off in memory chip stocks on Tuesday, as investors retreated following an extreme year-to-date rally. SanDisk led the decline, dropping 11% to $2,027.50, while Micron Technology and Western Digital shares each slid 10%.
The reversal was catalyzed by a 10% crash in South Korea’s Kospi index, which forced a temporary trading suspension. Major industry players SK Hynix and Samsung Electronics saw their shares fall by more than 12%. This regional volatility immediately impacted the Roundhill Memory ETF (DRAM), which tracks the sector, causing it to drop 14% in pre-market trading.
Market analysts suggest the sell-off represents profit-taking rather than a fundamental break. Prior to Tuesday, SanDisk had climbed 858% year-to-date, with Micron and Western Digital both up over 300%. The sector has been driven by massive demand for AI-focused data centers, though recent sentiment on platforms like Reddit has cooled from “very bullish” to “neutral” as investors grow cautious ahead of Micron’s fiscal Q3 2026 earnings report, scheduled for Wednesday, June 24.