Memory chip stocks fall as Texas, Georgia election results hit AI infrastructure outlook

Shares of memory chip makers Micron, SK Hynix, and SanDisk fell Wednesday as investors reassessed AI infrastructure spending after Democratic election wins, with Micron down over 6.7%, SK Hynix nearly 5.4%, and SanDisk over 8%. The declines contrasted with broad US market gains, as the S&P 500 rose 1.8% and the Nasdaq Composite gained 2.5%. Democratic victories in Texas and Georgia, where opposition to data center expansion has grown, raised concerns about potential construction delays affecting memory chip demand. Analysts called the selloff a policy-driven valuation reset rather than a collapse in AI server plans, noting memory makers remain sold out through 2029. However, Chinese chipmaker CXMT's planned server-grade DRAM product using an alternative architecture poses a longer-term competitive threat.