Meta Platforms shares dropped 4.9% after SanDisk plunged 14.1%, Micron fell 5.5% and Seagate slid 10.4% on mounting AI memory and storage glut concerns. Market jitters over a supply surplus threaten to drive down component prices and raise data-center cost pressures for Meta’s AI infrastructure.
Shares of major memory and storage companies tumbled in recent trading, with SanDisk plunging 14.1%, Micron sliding 5.5% and Seagate dropping 10.4%, reflecting investor concern over an impending oversupply of AI-specific memory and storage components.
Meta Platforms shares fell 4.9% as the sector-wide sell-off spread to companies reliant on data-center growth, signaling investor worries that falling component prices could erode profit margins on AI infrastructure investments.
Analysts warn that accelerated production of high-capacity memory chips and SSDs for AI workloads has outpaced demand forecasts, creating a potential glut that may force vendors to cut prices sharply in the coming quarters.
While lower component costs could benefit long-term data-center deployments, near-term margin pressure looms as Meta and its peers adjust spending plans in response to greater supply availability and reduced pricing leverage.
