Memory Chip Stocks Slide on Apple Supplier Concerns and Samsung Payout Disappointment

Memory chip stocks fell sharply Monday as investors weighed reports that Apple may be allowed to source chips from Chinese suppliers, along with Samsung's disappointing shareholder return announcement and broader sector profit-taking. Micron dropped about 7%, SK Hynix lost 5%, and SanDisk fell 9%. The selloff followed reports that the Trump administration could permit Apple to buy DRAM from ChangXin Memory Technologies and NAND flash from Yangtze Memory Technologies, raising fears US suppliers could lose Apple business. However, analysts cautioned the threat may be overstated, noting CXMT's limited production capacity and poor yields make significant supply unlikely. Samsung's 9% decline after announcing a 2026 shareholder return plan of 90-110 trillion won also pressured the sector, as investors hoped for clearer buyback commitments. Additionally, semiconductor stocks fell ahead of Nvidia's earnings report later this week, with the Philadelphia Semiconductor Index down about 4%.