- Micron and SanDisk stocks have both risen by three-digit percentage points this year, driven by strong demand for DRAM and NAND in the AI infrastructure boom
- Broadcom's earnings call on Thursday was a mixed bag, with investors interpreting the company's failure to raise its revenue guidance as a warning
- Micron Technology will announce its earnings on June 24 and that could redefine its outlook and stock performance
The semiconductor sector has seen significant gains for much of this year, but memory chip companies recently experienced a sharp correction.
To appreciate what happened yesterday, consider the extraordinary gains these stocks have posted this year. SanDisk stock rose 552% year-to-date in 2026, while Micron shares rose 179% during the same period. Over the last twelve months, SanDisk shares were up 3,299%, and Micron stock increased 684%.
Broadcom Earnings Trigger A Market Shockwave
The sell-off seems to stem mainly from Broadcom’s earnings report. Broadcom actually beat its top-line earnings, reporting $22.19 billion in revenue against expectations of $22.12 billion. But the company’s projection for third-quarter AI chip sales, $16 billion, fell short of the $17.2 billion analysts had predicted.
What’s more, the company didn’t raise its full-year AI semiconductor revenue guidance as much as some investors hoped. That cooled enthusiasm across the AI supply chain, putting pressure on related semiconductor companies, including memory specialists.
Wall Street has become intensely addicted to explosive, upwardly revised guidance metrics. As soon as Broadcom hinted that AI infrastructure demand was simply growing at a steady pace, anxiety spread quickly through high-valuation tech stocks.
Micron had just crossed the $1,000 per share mark days earlier, so it was especially vulnerable to selling driven by valuation concerns. Short-term institutional managers quickly locked in profits. This pulled the PHLX Semiconductor Index down 2.2% and took SanDisk with it.
Adding to the sentiment, reports indicated that SK Hynix received significant investor support for a planned U.S. listing, potentially raising capital to expand AI memory production. This news highlighted increased competition in the memory market and offered U.S. investors another option for sector involvement.
Is this A Reversal Warning or Simply A Pause?
The future for memory stocks depends on how investors see this recent dip. Industry analysts for example, predict a “supercycle,” with global DRAM revenue possibly up 51% and NAND climbing 45% year-over-year by 2026. Micron’s in a good spot because it focuses on HBM. SanDisk, which mostly sells NAND, also has strong pricing power as shortages continue.
Market research firm TrendForce expects memory revenue to jump 134% to $552 billion by 2026. That’s mostly because data centers need so much of it.
AI data centers are consuming 70% of the memory chip supply, and the industry believes the current shortage could continue until 2030. These market factors suggest that the recent decline represents normal consolidation rather than a fundamental shift.
What to Watch Next
The real test for the sector comes June 24, 2026. That’s when Micron releases its fiscal third-quarter earnings report. Robinhood’s institutional market snapshot shows most analysts expect revenue to hit an eye-watering $33.8 billion.
If management can easily beat those numbers and present a clear, ambitious plan for its HBM supply chains, Thursday’s sharp drop will quickly look like nothing more than a great short-term buying opportunity.
Broadcom reported strong quarterly earnings but disappointed momentum investors by holding its full-year artificial intelligence revenue guidance completely unchanged.
No, it appears as a pause after strong gains, with AI demand fundamentals intact despite cyclical risks.
Micron emphasizes HBM and higher capex, while SanDisk focuses on NAND with stronger balance sheet flexibility.
