The AI-driven memory rally has finally stalled.
Micron (MU), Samsung (005930.KS), SK Hynix (000660.KS) and the Roundhill Memory ETF (DRAM) have each slipped more than 20% from recent peaks, turning what was one of 2026’s hottest trades into a bear market despite Samsung posting record profits.
Samsung met earnings expectations, forecasting $59 billion in operating profit and $113 billion in sales — figures that would normally be celebrated, making the subsequent sell‑off all the more striking.
The downturn is no longer isolated to a handful of memory manufacturers.
According to Yahoo Finance’s semiconductor basket, the sector has shed about $1.5 trillion in market value since June 25, based on intraday Tuesday prices. Micron alone accounts for nearly $350 billion of that loss, while SanDisk (SNDK), Intel (INTC), Applied Materials (AMAT) and Lam Research (LRCX) have each seen declines exceeding $100 billion.
The sell‑off has widened, with twenty‑five semiconductor stocks in the group down at least 20% since June 25, among them Western Digital (WDC), Seagate (STX), Teradyne (TER), ON Semiconductor (ON) and GlobalFoundries (GFS).
The broader chip index has not yet entered bear‑market territory; the PHLX Semiconductor Index (^SOX) would need to drop another 9% from Monday’s close to qualify, leaving the memory‑stock slide as the most acute pressure point for now.
What distinguishes this decline is its follow‑through. Earlier dips in memory and chip stocks after the late‑March low were quickly bought up, but this retreat has persisted longer, pushed deeper and forced the leaders past the bear‑market threshold.
That does not signal the end of the AI memory narrative. The group still holds a median gain of close to 60% since late March and has added roughly $5 trillion in market value over that period.
Nevertheless, the threshold for success has shifted.
The forthcoming U.S. listing of SK Hynix on Friday arrives as a test of sentiment rather than a celebratory milestone. It mirrors the debate surrounding SpaceX‑fueled enthusiasm in the chip sector — whether a hot‑theme offering confirms the boom or reveals that much of the good news is already priced in.
While the underlying memory shortage may persist, investor patience is wearing thin.
Jared Blikre serves as Yahoo Finance’s global markets and data editor. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.