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Sandisk's Weak Guidance Sends AI Chip Stocks Tumbling
finance.yahoo.com • • business
Key Points:
- Memory and AI chip stocks declined sharply after Sandisk issued revenue guidance that disappointed investors despite better-than-expected quarterly results, leading to a broader semiconductor selloff in the U.S. and Asia.
- Sandisk shares fell about 8%, Western Digital dropped nearly 15%, SK hynix declined 10%, and Samsung Electronics lost nearly 6%, impacting major indices like South Korea's Kospi.
- Other notable semiconductor companies such as Micron Technology, Seagate Technology, AMD, Intel, Marvell Technology, Arm, and Texas Instruments also saw stock price declines ranging from 4% to 6%.
- The selloff was driven by concerns over softer memory pricing expectations rather than a drop in AI demand, with analysts emphasizing that hyperscale data center demand remains strong.
- Elevated valuations in the semiconductor sector have increased vulnerability to any signs of slowing growth, contributing to investor caution amid the pullback.
