Memory stocks plunge up to 20% as AI selloff deepens after US midterms

Memory stocks plunged Thursday as investors reduced exposure to AI-linked semiconductor firms after the US midterm elections, with Micron falling nearly 16%, SK Hynix dropping 13%, and SanDisk tumbling 20%. The selloff follows a broader rotation away from AI supply-chain stocks amid fears that Democratic gains could lead to stricter oversight of data center construction and energy use, potentially slowing AI infrastructure expansion. Micron's global DRAM market share fell to 21% in Q3 from 26% a year earlier, though industry-wide DRAM revenues surged 369% year-over-year on higher prices. Analysts remain divided on further declines, with Dan Ives predicting a 10-12% drop while Tom Lee calls the selloff an overreaction. SK Hynix faces delayed US export licenses for China expansion, complicating its $45 billion New York NAND investment.