Memory and Storage Stocks Keep Sliding Despite Blowout Earnings
Sandisk, Micron, Seagate and Western Digital, among the biggest stock winners of early 2026, have fallen into the bottom 10% of the S&P 500 since the end of June, Bloomberg reported. Sandisk and Western Digital have dropped more than 44% since the start of July, Seagate 33% and Micron 22%, though all four remain up for the year, led by Sandisk's gain of nearly 430%. Western Digital beat forecasts last Thursday with revenue up 55% to $4.38 billion and raised its dividend by 17%, yet its shares fell 3% on Friday. Investors are questioning how long debt-funded AI spending can last, and Gartner warned this month that more than $3.5 trillion of AI infrastructure spending could face write-downs by 2030; South Korea's SK Hynix has already lost about half its value between June and August.
The selloff shows investors reassessing the durability of the AI-driven memory earnings boom and the debt-financed spending behind it, with Gartner flagging potential write-downs of more than $3.5 trillion in AI infrastructure spending by 2030.
Sandisk, Micron, Seagate and Western Digital were among the top stocks of early 2026 but have dropped to the S&P 500’s bottom 10% since July, Bloomberg reported. Western Digital fell even after beating forecasts. Investors doubt how long debt-funded AI spending can last.
Sandisk, Micron, Seagate and Western Digital were among the stock market’s biggest winners in the first half of 2026. Since the end of June, all four have been in the bottom 10% of the S&P 500, Bloomberg reported, and strong results have not stopped the slide.
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