Over the last 24 hours,SanDisk shares sank 14.13%, Seagate dropped 10.38%, and Micron fell 5.49% as investors priced in a looming memory supply glut.

The three names have now lost 19.59%, 17.54%, and 14.36% over the past five sessions, respectively. That drop erases a chunk of 2026’s extraordinary rally.

A Glut Narrative Takes Hold

Morningstar’s director of research, Lorraine Tan, told Bloomberg TV that AI-linked stocks could fall 20% to 30% before becoming buyable again. She pointed to new supply coming from Samsung and SK Hynix and a potential plateau in AI capital spending.

Traders have turned that warning into this week’s working thesis. They are now questioning whether the pricing power behind the sector’s margin expansion can survive once fresh capacity lands.

A separate catalyst sharpened that realization. It was announced that Meta Platforms is building a cloud service to sell its own excess AI computing power. Investors took the plan as evidence that hyperscaler capex, and the chip demand tied to it, may be nearing a ceiling.

The news triggered a broad AI stock selloff that dragged memory and storage names down alongside chip equipment suppliers. A separate antitrust suit accusing Samsung, SK Hynix, and Micron of inflating DRAM prices has added to the scrutiny.

Bulls Push Back

Not every desk agrees with the glut thesis. Bank of America raised its SanDisk price target to $2,500 with a Buy rating. Citi made a similar call days earlier, lifting its own SanDisk target to the same level. Micron’s market capitalization surpassed Meta’s last month.

Micron reported fiscal third-quarter revenue of $41.46 billion, up 346% year over year, and guided fourth-quarter revenue to $50 billion. Micron stock still trades near seven times forward earnings even after the pullback.

Meta’s cloud ambitions could signal a genuine capex slowdown. They could also mark a new revenue stream layered onto continued AI spending. Either way, that question will likely shape the memory trade into next week.

Источник: BeInCrypto