Crude oil surges, US semiconductor stocks collectively plunge in pre-market! Memory chips hit hardest, Micron and SanDisk fall over 5%

U.S. semiconductor stocks turned red across the board in pre-market trading, with memory stocks suffering the heaviest losses. SanDisk (SNDK) fell 5.59%, Micron (MU) fell 5.28% leading the decline, while Marvell (MRVL) and optical communication stocks also weakened, with most stocks falling between 3% and 5%. This wave of selling pressure extends the memory sector pullback triggered by Samsung's earnings report, as the market worries that Samsung and SK Hynix's capacity expansion will lower prices, compounded by profit-taking after this year's excessive gains, putting the brakes on the once-soaring AI memory rally.

(Previous report: Samsung's operating profit surged 18 times! Outpacing Nvidia and Apple, but stock price plunged over 6% after earnings release) (Background supplement: Samsung aggressively raised memory prices by 20%! UBS raised price forecasts: DRAM up 32% QoQ in Q3, NAND up 30%)

Key Takeaways

• Memory leads the decline, SanDisk down 5.59% pre-market, Micron down 5.28%, Western Digital down 4.53%
• Optical communication stocks broadly weak, Astera Labs down 4.57%, AAOI down 4.47%, Credo down 4.42%
• Selling pressure stems from Samsung earnings, oversupply concerns, and AI demand peaking worries, with most stocks down 3% to 5%

The U.S. announced the reinstatement of the termination of the ceasefire agreement with Iran, and U.S. semiconductor stocks collectively weakened in pre-market trading, turning red across the board from memory, optical communication to logic chips. Memory stocks suffered the heaviest losses, with SanDisk (SNDK) down 5.59% pre-market, Micron (MU) down 5.28%, Western Digital (WDC) down 4.53%, and Seagate (STX) down 4.19%, as the entire sector slammed on the brakes.

Memory becomes the hardest-hit area

The reason memory is leading the decline is closely tied to Samsung's earnings report from the previous day. Samsung's operating profit surged 18 times, surpassing Nvidia and Apple, but the stock plunged over 6% after the earnings release. The market interpreted this as profits from the memory super-cycle having been fully priced in. In addition, Samsung and SK Hynix have successively signaled capacity expansion, leading investors to worry that DRAM and NAND prices will loosen once supply catches up with demand.

More realistically, they have risen too much. Micron and SanDisk have seen triple-digit gains year-to-date, which inherently raises the risk of a pullback. When profit-taking and institutional rebalancing kick in simultaneously, memory becomes the first sector to be cashed out.

Optical communication and logic chips also weaken

Selling pressure is not limited to memory. The optical communication group is also under pressure, with Astera Labs (ALAB) down 4.57%, Applied Optoelectronics (AAOI) down 4.47%, Credo (CRDO) down 4.42%, Corning (GLW) down 4.22%, Ciena (CIEN) down 3.69%, and Coherent (COHR) down 3.44%. Logic and equipment stocks did not escape either, with Marvell (MRVL) down 4.46%, Arm (ARM) down 3.51%, Intel (INTC) down 3.47%, Lam Research (LRCX) down 3.11%, and Applied Materials (AMAT) down 2.85%.

This across-the-sector decline points to the same anxiety: how long can AI demand sustain? DeepSeek was reported to be developing its own chips, aiming to break away from both Nvidia and Huawei, while Meta is reportedly planning to sell idle AI computing power. Both stories poke at the same issue: the AI computing power shortage that propped up the entire semiconductor rally over the past year may be easing.

Frequently Asked Questions

Why did U.S. semiconductor stocks fall sharply in pre-market trading?

The main reason is Samsung's earnings report triggered profit-taking in memory stocks, coupled with Samsung and SK Hynix's capacity expansion raising concerns about memory price weakness, along with worries about AI demand peaking. Most semiconductor stocks fell 3% to 5% in pre-market trading, with memory stocks leading the decline.

Which semiconductor stocks fell the most in pre-market trading?

Memory stocks led the decline: SanDisk (SNDK) fell 5.59%, Micron (MU) fell 5.28%, Western Digital (WDC) fell 4.53%, Seagate (STX) fell 4.19%; optical communication stock Astera Labs (ALAB) also fell 4.57%.