MU, SNDK, STX, WDC Stocks Slide Premarket: Is The Red-Hot Memory Rally Cooling?

• Samsung, SK Hynix, and Micron were sued in California last week in a class action suit claiming that they illegally coordinated to restrict DRAM supply and inflate prices.
• Stocktwits sentiment for MU dipped to ‘bullish’ from ‘extremely bullish,’ while the sentiment for WDC and STX dipped multiple points lower in the ‘bullish’ zone.
• Micron CEO Sanjay Mehrotra said the company is investing about $200 billion in manufacturing and R&D, including new memory fabs in Boise, Idaho, and Syracuse, New York.

Memory chip stocks fell in early premarket trading on Wednesday as investors booked profits after last week’s rally and institutional funds rebalanced their portfolios at the start of the year’s second half. 

SanDisk shares declined 4.6%, and Micron stock dipped 3.2%. Western Digital and Seagate stocks dropped about 1.7% each, while the Roundhill Memory ETF (DRAM) inched 6% lower. 

The latest moves bring the stocks further below their peaks. As of their last close, MU is down 7.4%, SNDK is down 2.8%, WDC is down 18.1%, and STX is down about 15%.

The declines appear to be weighing on retail sentiment, with traders debating whether the rally has peaked and if further downside lies ahead. 

A lawsuit for price collusion was also weighing on the sentiment in the memory trade. Samsung, SK Hynix, and Micron were sued in California last week in a class action alleging that they illegally coordinated to restrict DRAM supply and inflate prices, which have risen by roughly 700% over four years. 

Notably, Samsung and SK Hynix have pleaded guilty to criminal DRAM price-fixing once before, with the latter paying an $185 million fine in April 2005.

Citrini Research Flags Future Pressure

Separately, Citrini Research said memory chip prices have risen so sharply that companies buying them—including OEMs such as Dell, HP, Apple and Nvidia server makers—will eventually be forced to use memory more efficiently or reduce their overall memory needs, warning that demand could weaken over time.

“DRAM prices are not going up the way they have without a significant incentive to use it more efficiently,” the firm posted on X on Tuesday. “You need to be an extremely firm believer in Jevon’s Paradox as it applies to memory to remain long the OEMs here, otherwise it is essentially a bet that’s short innovation out of necessity.”

Retail View On Memory Stocks

On Stocktwits, retail sentiment for MU dipped to ‘bullish’ from ‘extremely bullish,’ while the sentiment for WDC and STX dipped multiple points lower in the ‘bullish’ zone. The sentiment for SNDK dipped as well, although it remained in the ‘extremely bullish’ territory.

“$SNDK gets ready for bulls to be taken to the woodshed. Looks like a triple top pattern on the daily chart. Shorty is going to make money,” said a trader.

Others remained bullish. One wrote on the MU stream: “These funds bought MU  much lower and now had to exit as the market value became too big a percentage of their portfolio. We will see over $1,200 tomorrow as all key attributes are in play- under 10 Fwd PE, $30B in cash, only $4B in debt, over 15 large customer contracts, 86% margin, SNDK up 10% today.”

MU Stock In Focus

Micron shares rose four times in the first half of 2026, supported by the company’s yet another blowout quarterly report last week. CEO Sanjay Mehrotra defended the recent memory price increases in a CNBC interview on Tuesday, saying customers had driven hard bargains on pricing for years and that prices have only now become favorable enough for memory makers to invest in expanding their businesses.

Mehrotra said investing roughly $200 billion in manufacturing and R&D, including new memory fabs in Boise, Idaho and Syracuse, New York. The figure was about $16 billion in its fiscal year 2025, per Fiscal.AI

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