Micron Technology and SanDisk Shares Crash Amid AI Overcapacity Fears

Micron Technology, Inc. and other major memory chip manufacturers saw their share prices crash in July 2026 following a period of unprecedented growth. SanDisk Inc. experienced the steepest decline, with its stock dropping between 36% and 40% over the month, while Western Digital Inc. fell 35% and Micron Technology, Inc. declined approximately 24% to 26%.

This downturn follows a massive rally between January and June, where Micron Technology, Inc.'s stock rose 304% and SanDisk Inc.'s soared 858%. SanDisk Inc.'s growth was particularly aggressive, seeing gains of nearly 3,900% since its spin-off from Western Digital Inc. last year. Micron Technology, Inc.'s valuation previously peaked near $1.4 trillion, supported by $90 billion in revenue and over $50 billion in profit over the last four quarters.

Investors are driving the current sell-off due to fears that artificial intelligence computing capacity is being overbuilt and that memory product shortages may soon end, leading to falling prices. Some analysts suggest the dip is a result of profit-taking or a broader bearish trend.

Micron Technology, Inc. management has refuted these concerns, stating during a recent earnings announcement that the "tightness" in the memory chip market will persist beyond 2027. Both Micron Technology, Inc. and SanDisk Inc. continue to benefit from high demand for DRAM and NAND memory, which currently serve as a primary bottleneck in AI infrastructure development.