AI and Memory-Chip Stocks Plunge in Selloff Over Profitability Concerns

As Nvidia and other technology giants pour money into artificial intelligence, investors are questioning whether heavy spending on AI infrastructure will generate returns on schedule, prompting a correction in technology-stock valuations. High-bandwidth memory is essential to AI computing, making the performance of major producers such as Micron and South Korea’s SK hynix an important gauge of the broader AI cycle. Their share-price swings are influencing capital flows across the global semiconductor supply chain.

In the latest trading session in mid-July 2026, Micron had fallen 22% from its all-time high, while both it and SanDisk plunged more than 10% in a single day. The selloff spilled over to South Korea’s SK hynix and dragged Taiwan’s Nanya Technology lower. Despite divided views, analysts said Micron had secured long-term contracts and maintained solid operations, describing the correction as short-term profit-taking and saying the industry’s overall fundamentals remained strong.