Memory stocks including Micron Technology, SK Hynix and SanDisk fell sharply on Friday as disappointing earnings from Amazon and Intel triggered a broader sell-off in technology and semiconductor shares.
Micron MU declined about 5%, while SK Hynix fell over 7% and SanDisk dropped more than 10% despite reporting stronger-than-expected fiscal first-quarter earnings and issuing an upbeat outlook, as the stock got caught in the broader sell-off and analysts also flagged valuation concerns.
The Philadelphia Semiconductor Index slid more than 6%, while the Nasdaq fell over 2%, reflecting growing investor concerns about the outlook for the technology sector.
The declines came as Amazon reported a third-quarter earnings and revenue miss, while Intel’s weaker-than-expected guidance raised fresh questions about demand for chips and the cost of expanding manufacturing capacity.
Amazon and Intel results weigh on chipmakers
Amazon shares fell more than 2% after the company missed expectations on both revenue and earnings.
The e-commerce and cloud computing giant maintained its 2026 capital expenditure forecast of $220 billion, while reporting negative free cash flow for a second consecutive quarter, with the deficit widening substantially from the previous period.
Intel’s outlook proved an even bigger drag on sentiment.
Its shares plunged around 29% on Friday after the chipmaker forecast December-quarter revenue below market expectations and warned that weakness in the PC market could persist through the first half of 2027.
The company also cautioned that it would burn cash this year as it contends with manufacturing bottlenecks, supply disruptions and heavy investment in production expansion.
The weakness comes despite growing demand for data-centre chips, as Intel has struggled to increase manufacturing output sufficiently to capitalise on that opportunity.
Higher memory prices are also pushing up PC costs, adding pressure to an already soft market.
“I’m disappointed that we were not able to meet strong customer demand in this quarter,” Intel CEO Lip-Bu Tan said on a conference call with analysts.
“We face near-term challenges, including manufacturing supply shortages, the unprecedented memory crunch, and the resulting softness in PC demand.”
The warning reverberated across the semiconductor industry.
Nvidia, Broadcom, AMD, Micron, Qualcomm and Arm Holdings’ US-listed shares all fell.
China’s CXMT reports surge in revenue and profits
The broader weakness in memory stocks coincided with strong financial results from China’s ChangXin Memory Technologies (CXMT), highlighting the changing competitive landscape in the industry.
China’s largest DRAM supplier by revenue reported a net profit attributable to shareholders of 54.4 billion yuan ($8.11 billion) for the three months ended September 30.
Its gross margin rose 1.94 percentage points from the second quarter to 89.53%, supported by higher prices and sales volumes and lower per-chip costs.
Revenue surged 613.2% year over year to 118.71 billion yuan, increasing 19.3% from the previous quarter.
The results marked the company’s first financial report since its mammoth initial public offering in July.
CXMT has benefited from rising demand for memory chips driven by artificial intelligence, as established manufacturers such as SK Hynix, Samsung Electronics and Micron increasingly prioritise higher-value products, including high-bandwidth memory (HBM).
The Chinese manufacturer is now also seeking to expand into the lucrative HBM market, a direct threat to the three dominant memory chip makers- Micron, Samsung and SK Hynix.
Sources said this week that CXMT plans to begin limited production of HBM3E chips within two months, despite manufacturing yields of only 20% to 30%, compared with around 70% at South Korea’s SK Hynix.
SanDisk beats estimates, but analysts flag valuation concerns
SanDisk’s sharp share price decline came despite a strong quarterly performance and an upbeat outlook.
The company reported a 378% jump in fiscal first-quarter revenue to $11.03 billion, compared with $2.31 billion a year earlier, beating estimates of around $10.7 billion.
Adjusted earnings climbed to $49.51 per share, exceeding Wall Street expectations of approximately $46.67.
Its non-GAAP gross margin widened significantly to 85.1% from 29.9% a year earlier.
The company also issued stronger-than-expected guidance for the current quarter, forecasting revenue of $12.2 billion to $12.6 billion and adjusted earnings of $55 to $57 per share.
It expects non-GAAP gross margins to remain between 84.5% and 85.5%.
SanDisk also repurchased approximately $5 billion of shares during the quarter and announced an eight-for-one stock split.
Shareholders will receive additional shares on November 19, with split-adjusted trading beginning on November 20.
The stock has surged more than 337% this year, making it one of the strongest performers in the memory sector.
However, analysts have begun to flag valuation risks following the rally, even as they remain positive on the company’s fundamentals.
Goldman Sachs lowered its price target to $2,000 from $2,200 while maintaining a Buy rating.
The brokerage highlighted improving traction in SanDisk’s data-centre business, including multiple enterprise SSD wins at hyperscale customers.
Data-centre sales now account for nearly 45% of revenue, according to the firm.
Goldman also pointed to the company’s continued share buybacks and improving product mix, arguing that limited additions to NAND supply could support the market.
It expects shareholder returns through buybacks to increase further.
BofA Securities also cut its price target to $2,000 from $2,500, while retaining a Buy rating.
The firm lowered its valuation multiple to reflect concerns that the memory cycle could be approaching a late stage.
Wells Fargo expects SanDisk shares to digest a slowing pace of earnings upside despite another quarterly beat and higher guidance.
The brokerage said future share performance would depend on greater confidence in earnings stability across the memory cycle.
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