4 Memory Stocks Down 30%+ as AI Selloff Deepens
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Micron Technology reported fiscal Q3 revenue (ended May 28, 2026) that quadrupled year-over-year to $41.5 billion with $28.2 billion in net income and guided for ~$50 billion in Q4 at roughly 86% gross margin, yet the stock trades at about 6x forward earnings as it sits ~35% below its 52-week high.
- Sandisk posted fiscal Q3 revenue up 251% year-over-year to $5.95 billion with EPS of $23.03, carries no debt and has signed five multi-year supply agreements — but the stock has fallen ~53% from its high with results due the week of July 29, 2026.
- Seagate Technology reported fiscal Q4 revenue of $3.6 billion, record free cash flow of $3.1 billion, guided for ~$4.1 billion in Q1 with ~$7.30 adjusted EPS, and said nearly all of its data-center drive capacity is committed through calendar 2027.
- Western Digital saw fiscal Q3 revenue rise 45% to $3.3 billion with cloud customers at 89%, but $2.7 billion of its $3.2 billion net income was a pre-tax paper gain on the Sandisk stake it retained at the two companies' 2025 separation.
- Motley Fool analyst Daniel Sparks recommends buying Micron and Seagate as the broadest and freshest-positioned plays while cautioning against Sandisk (spot-price-dependent) and Western Digital (priced at ~30x forward earnings, above Seagate's ~26x on the same hard-drive boom).
Why it matters: Investors are treating Micron, Sandisk, Western Digital, and Seagate as one trade despite four different earnings engines — Micron's HBM/DRAM growth and Seagate's locked 2027 drive capacity look structurally firmer than Sandisk's spot-price exposure and Western Digital's Sandisk-stake-paper-profit.
