Memory chip stocks plunge as Micron, SanDisk, SK Hynix fall up to 20%

Memory chip stocks fell sharply Thursday as investors reduced exposure to AI-linked semiconductor companies following the U.S. midterm elections. Micron Technology dropped nearly 16%, SK Hynix lost 13%, and SanDisk plunged 20%. The declines followed a broader rotation away from semiconductor and AI supply chain stocks. Investors fear Democratic election wins could lead to stricter oversight of data center construction and energy use, potentially slowing AI infrastructure expansion. Memory chip makers are especially vulnerable since data centers rely heavily on high-bandwidth memory and other semiconductor products. Despite the selloff, industry DRAM revenue rose 369% year-over-year in the third quarter, driven by higher average selling prices. Micron's DRAM market share fell to 21% from 26% a year earlier, though analysts note revenue can still grow on pricing. SK Hynix faces delayed U.S. export license approvals for equipment needed to expand in China.