MU, SNDK, WDC: Memory Stocks Dip As Broadcom’s Forecast Dampens AI Sentiment, Retail Turns Buyer

• Broadcom projected $16 billion in AI chip revenue in the third quarter, much below estimates of $17.2 billion, and kept its fiscal year 2027 outlook unchanged at $100 billion.
• The iShares Semiconductor ETF (SOXX) declined 2% on Thursday, while the Invesco QQQ Trust Series 1 (QQQ) declined 0.5%.
• Investors viewed Broadcom’s forecasts as a bearish signal, and retail investors appeared to be using the dip in memory stock to increase their positions.

Micron Technology Inc. led declines in memory and chip stocks on Thursday as investors hit pause on the AI trade after many viewed Broadcom’s latest forecasts as a sign of lingering softness in parts of the chip market.

Micron shares fell 7.7% on Thursday, their worst fall in over a month, and declined nearly 5% in the overnight session. SanDisk shares dropped 4% and then 1.7% overnight. Western Digital shares dropped 3% and 1% in the regular and overnight sessions, respectively.

The iShares Semiconductor ETF (SOXX) declined 2%, while the Invesco QQQ Trust Series 1 (QQQ) declined 0.5%.

AVGO Forecast Fails To Meet Lofty Targets

Broadcom reported its second-quarter fiscal results on Wednesday evening, beating on both revenue and profit, though its guidance left investors wanting more. The custom AI chipmaker projected $16 billion in AI chip revenue in the third quarter, much below estimates of $17.2 billion, and kept its fiscal year 2027 outlook unchanged at $100 billion.

Broadcom’s updates, despite highlighting continued demand from hyperscale customers such as Google and Amazon, fell short of the elevated expectations investors have come to hold for AI-linked chipmakers. AVGO stock tumbled 12.6% on Thursday, marking its steepest single-day decline since January 2025.

The Broadcom-triggered dip in memory stocks came as an opportunity to add positions in the segment that has emerged as the biggest beneficiary of the AI boom, according to retail investors.

Retail View On MU, SNDK, WDC

On Stocktwits, the retail sentiment for MU turned ‘bullish’ from ‘neutral,’ will several traders positing about buying the dip. “$MU I am selling every other stock I have to buy this dip. What a blessing,” said a trader.

A trader called it “just a healthy pullback,” while another wrote: “Calm down guys. She won’t stop until minimum $1,250. This is just a fake drop someone wanted to get in cheap. Wall Street says that there is more room here. Dance with the ups and downs. I’m in again for another rebound.”

To be sure, the retail sentiment for SNKD and WDC continued to be ‘bearish,’ although traders were bullish of the longer term price performance. “$SNDK Only day traders worry about 7% drops. When you're up 298%, 7% drop is peanuts. Go long.. stay long and stay hard and don’t break!” one of the users posted.

Micron stock has rallied 250% year to date, while SanDisk shares are up a staggering 641%. Western Digital stock is up 234%. The companies have indicated that demand for their memory chips remains at record levels, with much of their output already committed for the next two years. 

As they move to expand production capacity to meet growing AI-driven demand, investors continue to view the setup as strongly bullish.

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