Memory stocks face a sharp selloff as investor sentiment cools following executive commentary on slowing the pace of AI model development, despite no official changes to capital spending plans.
Micron fell 6% amid AI slowdown fears triggered by CEO essays.
SanDisk dropped 6% as memory stocks sold off on AI development pace concerns.
SK Hynix declined 7% due to its role as primary HBM supplier to NVIDIA, making it sensitive to AI training demand fears.
Memory chip stocks including Micron, SanDisk, and SK Hynix tumbled on Monday following calls from Anthropic and OpenAI CEOs to decelerate AI capability advancements. While no hyperscalers have reduced capital expenditures, the market reacted sharply to the potential for a shift in long-term training demand. The Roundhill Memory ETF dropped 7%, significantly underperforming the broader tech sector.
The decline is driven by a sentiment shock following essays from Anthropic and OpenAI CEOs suggesting a slower pace for AI development, which investors fear could eventually compress memory content requirements per server.