Memory stocks took a breather after a red-hot run. Micron $MU ( ▼ 2.84% ) and SanDisk $SNDK ( ▼ 2.43% ) both traded lower after reports that Samsung is moving ahead with mass production of its next-generation high-bandwidth memory chip, HBM4, slightly earlier than expected.
For a sector that has thrived on tight supply and soaring prices, more capacity on the way is making investors pause.
HBM Supply May Be Catching Up
High-bandwidth memory, or HBM, is a key component in AI servers, enabling the massive data throughput required by advanced models. Micron $MU is one of the few companies producing HBM at scale, making it a major beneficiary of the AI-driven memory boom.
Samsung’s decision to accelerate HBM4 production suggests that leading manufacturers are responding to sky-high prices by pushing more supply into the market. Over time, that could ease the severe shortages that have driven margins higher across the memory space.
SanDisk’s AI Bet Still Tied to Memory Prices
SanDisk $SNDK does not produce HBM directly, but it is working on high-performance flash NAND products aimed at AI data center workloads. That means its fortunes are still closely tied to overall memory pricing trends.
If additional supply from Samsung and others cools the market, the extraordinary pricing power that has fueled recent profit surges at memory companies may start to fade.
For now, investors are adjusting to the idea that the memory supercycle may be entering a new phase, where supply finally begins to catch up with AI demand.