Memory Chip Stocks Face Pressure Amid Valuation Concerns

WHO:

Yahoo Finance - Sandisk (NASDAQ:SNDK), Western Digital (WDC), SK hynix (SKHY), Samsung Electronics (SSNLF), Micron Technology (MU), Seagate Technology (NASDAQ:STX), Advanced Micro Devices (AMD), Intel (INTC), Marvell Technology (NASDAQ:MRVL), Arm (NASDAQ:ARM), Texas Instruments (TXN)

WHAT:

Yahoo Finance - Sandisk repurchased $4.5 billion of its stock in its most recent quarter and has $14.5 billion remaining under its existing share repurchase authorization.

Yahoo Finance - Sandisk's first quarter fiscal 2027 revenue guidance is between $10.3 billion and $10.8 billion, which is below consensus estimates of $10.8 billion.

Yahoo Finance - Sandisk reported non-GAAP earnings of $39.25 per share on $8.97 billion in revenue for the fiscal fourth quarter 2026.

Yahoo Finance - Data center revenue for Sandisk increased by 103% sequentially to $2.98 billion.

Yahoo Finance - Sandisk management indicated a NAND-related total addressable market of roughly $500 billion by calendar year 2027, up from $300 billion in 2026.

Yahoo Finance - Sandisk issued revenue guidance that disappointed investors, leading to a sector-wide pullback in memory and AI chip stocks.

Yahoo Finance - Sandisk shares dropped about 8% after the opening bell.

Yahoo Finance - Western Digital tumbled nearly 15% despite topping earnings and outlook estimates.

Yahoo Finance - SK hynix sank about 10% and Samsung Electronics fell nearly 6%.

Yahoo Finance - Micron Technology and Seagate Technology each declined about 4%.

WHERE:

Yahoo Finance - The selloff affected semiconductor shares across the U.S. and Asia, weighing on South Korea's Kospi index.

WHY:

Yahoo Finance - The decline in stock prices reflected investor concerns over softer memory pricing expectations rather than weakening AI demand.

Yahoo Finance - Analysts noted that demand from hyperscale data centers remains resilient, but elevated valuations have left the sector vulnerable to signs of slowing growth.

HOW:

Yahoo Finance - The sector-wide pullback followed Sandisk's disappointing revenue guidance despite better-than-expected quarterly results.

(UPDATED August 7, 2026 19:52 UTC)

Sandisk has repurchased $4.5 billion of its stock in the most recent quarter, leaving $14.5 billion available under its existing share repurchase authorization. For the fiscal fourth quarter of 2026, Sandisk reported non-GAAP earnings of $39.25 per share on revenue of $8.97 billion, while data center revenue surged by 103% sequentially to $2.98 billion. Looking ahead, Sandisk's first quarter fiscal 2027 revenue guidance is projected to be between $10.3 billion and $10.8 billion, which falls short of consensus estimates.

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(UPDATED August 7, 2026 10:49 UTC)

Sandisk's disappointing revenue guidance has triggered a significant pullback in memory and AI chip stocks, causing its shares to drop about 8% after the opening bell. Western Digital saw a nearly 15% tumble despite beating earnings estimates, while SK hynix and Samsung Electronics also faced declines of about 10% and nearly 6%, respectively. This selloff has impacted semiconductor shares across the U.S. and Asia, with analysts attributing the decline to concerns over softer memory pricing expectations, even as demand from hyperscale data centers remains strong.