Memory Sector Selloff Pounds Tech Stocks Despite Apple's Bullish Signal

A wave of selling swept through the memory and storage sector, erasing billions in market value despite Apple CEO Tim Cook's bullish comments on chip pricing power. Despite fresh signals from Cook that producers remain firmly in control, Micron Technology Inc.'s shares slid 4% premarket, while peers Western Digital Corp. and SanDisk Corp. suffered even steeper losses.

Western Digital posted fiscal fourth-quarter revenue of $3.75 billion, a 44% year-over-year surge that edged past consensus estimates of $3.71 billion. Adjusted earnings of $3.56 per share topped the $3.30 analysts had penciled in, but its first-quarter revenue guidance landed just shy of expectations.

SanDisk's earnings call introduced a nuance that rattled traders: roughly two-thirds of recent revenue growth stemmed from higher memory prices, while only one-third came from increased shipment volumes. The company reported a 32% sequential decline in consumer memory revenue to $556 million, flagging that PC and smartphone shipments are expected to contract by mid-teens percentages this year.

Underneath the price action, analysts at TipRanks noted that investors appeared to be looking well beyond another earnings beat. The market wanted stronger evidence that favorable NAND pricing and new long-term customer agreements would continue supporting earnings growth into fiscal 2027.