TurboQuant Selloff: Memory Chip Stocks Plummet Amid Google's AI Compression Breakthrough

The memory chip sector experienced a sharp decline in March, with Micron Technology, SanDisk, Seagate Technology, and Western Digital taking the biggest hits. These stocks saw significant price drops following Google's announcement of a new compression technology called TurboQuant, which could potentially reduce the demand for memory chips.

Micron shares fell nearly 10% on Monday, with its peers also seeing declines. Since its blowout earnings report on March 18, Micron is down about 30%. SanDisk and Western Digital dropped 7% and 9%, respectively, while Seagate fell 4.6%. The sector's downturn has been attributed to the broader tech selloff and uncertainty stemming from the U.S.-Iran conflict.

Retail traders remain bullish on Micron, with sentiment unchanged over the past week. Analysts are also largely optimistic about the company's long-term prospects, citing sold-out 2026 HBM supply as a positive factor. Currently, 38 of 43 analysts recommend 'Buy' or higher, with an average price target of $527.60 implying an over 64% upside to Micron's last close.

A trader on Stocktwits suggested that NAND flash memory will be significantly affected by TurboQuant, while DRAM and HBM will be largely unaffected. This means that SanDisk, which generates nearly all its revenue from NAND, is more exposed to the impact of the new compression technology.