Memory Chip Stocks Slide Thursday as DRAM and NAND Prices Soar 660% Year-Over-Year

According to Bernstein Research data, memory chip stocks tumbled on Thursday, with Micron down 15.5% and SanDisk down 23.3% in early July trading. The selloff reflects extreme price increases in the sector: DRAM memory chips used in PCs and servers, and NAND flash memory for data storage, both surged approximately 660% over the past year through June.

Analysts warn the outsized gains may create supply-demand tensions. As Mark Newman, memory chip analyst at Bernstein Research, stated, demand is significantly outpacing supply, causing customers to seek alternatives—including discussions with cheaper Chinese chipmakers. Meanwhile, Korean giants SK Hynix and Samsung have announced plans to rapidly expand production capacity to address supply shortages.