SanDisk stock tumbled 9.8% on July 7, 2026, as Samsung’s record earnings sparked a broad selloff in memory chip stocks amid investor concerns about the sustainability of the AI boom.
Samsung Electronics reported a 19-fold jump in second-quarter operating profit, estimated at 89.4 trillion won ($58.44 billion), beating analyst expectations. Yet despite the stellar results, investors wiped more than $80 billion off Samsung’s market value, with the company’s shares falling as much as 10.1% during the trading session.
The paradoxical reaction reflected growing anxiety about how long the AI data center spending wave will sustain. According to Reuters, analysts attributed the declines to lofty market expectations that had already been priced in after memory stocks rallied sharply ahead of the earnings. Albert Yong, managing partner at Petra Capital Management, noted that “investors remain concerned about the sustainability of the AI boom and the risk of slower AI infrastructure spending by major U.S. technology firms.”
The selloff swept across the entire memory sector. Micron Technology and Western Digital each fell 7%, while the Roundhill Memory ETF dropped 6%, confirming the breadth of the rotation. SanDisk shares had surged roughly 781% in the first half of 2026, making the stock vulnerable to profit-taking after such an extraordinary run.
Memory chip prices had climbed sharply during Q2, with contract DRAM prices rising 44% and NAND prices climbing 53% quarter-over-quarter, according to Citi Research cited by Reuters. However, Morningstar analyst Jing Jie Yu said Samsung’s revenue estimate fell slightly short of expectations, driven by more moderate DRAM price increases than some investors had anticipated. This moderation “likely spooked investors who are increasingly pricing in structural strength in memory prices,” Yu said.
The broader concern centers on whether U.S. tech giants—including Meta, Microsoft, Amazon, and Alphabet—will continue their aggressive AI infrastructure buildout or pull back on spending. Morgan Stanley reported that semiconductor stocks had begun losing momentum after a historic rally since late March, as investors braced for “more capex discipline in the near-term” from hyperscalers.
Sources
- Reuters — Samsung’s 19-fold profit jump, investor concerns about AI boom sustainability, and analyst commentary on the selloff.
- Yahoo Finance — SanDisk and memory stock declines on July 7, 2026.
- Bloomberg — Samsung’s record profit failing to impress markets due to AI spending concerns.
- Citi Research — Memory chip price increases (44% DRAM, 53% NAND) in Q2 2026.
- Morningstar — Analysis of Samsung’s revenue expectations and investor sentiment.
- 24/7 Wall St. — SanDisk’s 781% year-to-date gain and memory sector dynamics.
