AI Infrastructure Stocks Sink as OpenAI Funding Struggles

Major semiconductor and memory manufacturers experienced significant stock declines in March 2026 as investors feared an AI bubble burst. Micron Technology, Samsung Electronics, and SK Hynix saw valuations drop sharply, with Samsung falling 19.68% and SK Hynix dropping 14.06%. The downturn was driven by OpenAI's failure to convert non-binding Letters of Intent for DRAM wafers—intended for its Stargate Project data centers—into actual purchases due to financing difficulties.

Other market pressures included the shutdown of OpenAI's Sora platform on March 24 and Google's introduction of TurboQuant extreme compression technology, which contributed to falling RAM prices across the United States, Germany, and China. Broad chipmaking stocks also declined, with Nvidia Corporation shares falling 7.5% and Taiwan Semiconductor Manufacturing shares dropping 10% amid concerns over Middle East conflict disrupting resources like helium and bromine.

To adapt to the volatility, Micron Technology shuttered its consumer brand Crucial to focus on corporate clients. Meanwhile, Microsoft partially mitigated infrastructure losses by leasing space for its own AI factory in Abilene, Texas, adjacent to the Stargate site. Despite the sell-off, hyperscalers are still projected to spend $700 billion on data centers this year.