Chip Sector Loses $2 Trillion as DRAM Approaches Key Support Level
DRAM•The chip sector has shed about $2 trillion in market value over recent months, driven by declines in memory and logic stocks. Price charts for DRAM are approaching a critical support level that could dictate whether the sector stabilizes or resumes its downturn.
1. Sector Valuation Decline
Over the past quarter, global chip stocks have plunged, erasing roughly $2 trillion in combined market capitalization. Memory-focused names, including DRAM, along with logic-chip peers, led the downturn as end-market demand cooled and inventory levels rose.
2. Technical Chart Analysis
DRAM’s weekly price chart is now testing a long-term trendline near recent lows, a make-or-break point that traders view as key to determining if the sell-off will pause or deepen. A decisive break below this support could signal further declines, while a rebound might attract technical buying interest.
