AI memory stocks trim losses as investors buy the dip
Ines Ferré· Senior Business Reporter
Updated Wed, July 8, 2026 at 8:24 PM GMT+5:30
2 min read
What happened: AI memory stocks Micron (MU), Sandisk (SNDK), and Western Digital (WDC) trimmed losses on Wednesday as investors bought the dip
What’s behind the move:The move comes amid renewed strikes between the US and Iran and as selling pressure on the artificial intelligence trade continued after Samsung Electronics’ (005930.KS) record profits failed to impress investors this week
Growing concerns that hyperscalers could eventually slow their AI infrastructure spending have prompted investors to take profits across the sector
Micron shares trimmed losses while Sandisk and Western Digital flipped into green territory after opening in the red
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921.18-17.20(-1.83%)
As of 11:59:40 AM EDT. Market Open.
MUSNDKWDC
Sentiment was also pressured by a Reuters report that Chinese AI startup DeepSeek is developing its own AI chip, raising fresh competitive concerns
The weakness spread across the broader semiconductor sector, with Intel (INTC), AMD (AMD), and Broadcom (AVGO) all sinking
What else you need to know: The AI trade has been a major driver of earnings growth this year, helping propel the broader stock market higher
A critical shortage of high-bandwidth memory (HBM) used in AI data centers has fueled sharp gains in shares of Micron, Samsung Electronics, and SK Hynix (000660.KS), with Wall Street expecting supply constraints to persist through 2027
Fundstrat’s Tom Lee wrote in a note on Wednesday, “We remain structurally bullish on AI and AI-related stocks and view this pullback as a buying opportunity.”
The AI trade could face an important test this week as SK Hynix plans to raise about $28 billion through a US-listed IPO
Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities
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