Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) are down 8% to $1,061.44 in Wednesday morning trading, while SanDisk (NASDAQ:SNDK) stock has slid 10% to $2,051.10 and Western Digital (NASDAQ:WDC) shares have dropped 7% to $595.81. The memory group is leading a broader semiconductor pullback as the NASDAQ 100 opens the second half of the year lower.
The Roundhill Memory ETF (NASDAQ:DRAM) is also lower with the basket of memory/storage stocks. Notably, the NASDAQ 100 is off 1% at midmorning after climbing 20% year to date through June 30.
Today’s drop follows a parabolic first half of the year. Micron stock had rallied 305% year to date through Tuesday, while SanDisk stock was up 858% and Western Digital stock was up 271% over the same window. These are among the market’s most extended names.
Profit-Taking Meets a Hawkish Fed and a DRAM Lawsuit
There’s no single clean catalyst behind the selling. Several forces converged, starting with institutional rebalancing at the start of the second half after enormous first-half runs. Extended names like Micron, SanDisk, and Western Digital are prime candidates to give back gains.
The macro backdrop turned hostile early. A Cleveland Fed official suggested the U.S. may need higher interest rates, and new Fed Chair Kevin Warsh offered no dovish relief ahead of key jobs data. Rate-hike expectations rose, and chip names came in for the sharpest hits across the broader semiconductor complex, including major GPU makers, Advanced Micro Devices (NASDAQ:AMD), and the wafer-fab equipment names.
Two memory-specific overhangs added fuel. A California class action filed last week alleges Samsung, SK Hynix, and Micron illegally coordinated to restrict DRAM supply and inflate prices, which have risen 700% over four years. That’s an allegation, not a finding, though it weighs on trade sentiment; separately, Citrini Research warned that memory prices have risen so sharply that large buyers, including major PC OEMs, hyperscalers, and NVIDIA (NASDAQ:NVDA) server partners, may be forced to use memory more efficiently or reduce their memory needs, softening demand over time.
Bull Case Still Intact After Micron’s Blowout Quarter
The longer-term memory supercycle thesis isn’t broken by a single-session pullback. Micron reported fiscal Q3 2026 revenue of $41.46 billion, up 346% year over year, with non-GAAP EPS of $25.11 beating the $20.28 consensus. Moreover, the company’s Q4 guidance calls for revenue of $50 billion and non-GAAP EPS of $31 at the midpoint.
CEO Sanjay Mehrotra defended memory price increases and stated that Micron plans to invest roughly $200 billion in manufacturing and R&D, including new fabs in Boise, Idaho and Syracuse, New York. Retail sentiment on Reddit cooled but stayed constructive on Micron stock, with r/stocks running a 62 (Bullish) score this morning despite the drop.
What to Watch: The ETF Angle and the Close
For readers who want basket exposure rather than single-stock risk, the Roundhill Memory ETF holds all three names. Micron sits near 24% of the fund, with SanDisk at 5% and Western Digital at 5%, alongside international makers Samsung, SK Hynix, and Kioxia. The ETF is concentrated and sector-specific, so it carries the same volatility profile as the underlying memory names.
Investors can watch for whether today’s lows hold into the close and whether the DRAM lawsuit headlines gain traction. The prediction markets on Polymarket priced today’s decline at 87% probability of a down day for Micron stock, and pegged the July 2 direction at 50/50. The next catalysts are the June jobs report later this week and upcoming SanDisk and Western Digital fiscal Q4 results.
This coverage is informational, not investment advice. Position sizing matters in extended, high-volatility names, and investors should consider keeping their exposure modest given the size of the first-half moves.
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