Memory Stocks Slide Over 20%, Burry Cuts Micron Stake
AMAT•Memory chip stocks including Micron, Samsung and SK Hynix plunged over 20% from their 52-week peaks this week, pushing the sector into a bear market. Investor Michael Burry cut his Micron stake after a 5.8% one-day share drop, signaling growing concerns that could curb equipment orders at Applied Materials.
1. Memory Sector Bear Market
Shares of leading memory chip makers Micron, Samsung and SK Hynix each declined more than 20% from their 52-week highs, officially placing the group in bear-market territory. The broad sell-off reflects concerns over oversupply, slowing smartphone and data center demand, and weakening pricing across DRAM and NAND segments.
2. Michael Burry’s Micron Move
High-profile investor Michael Burry reduced his exposure to Micron after the stock fell 5.8% in a single session, citing anticipated inventory build-ups and softer end-market spending. His public bearish stance underscores growing skepticism among institutional holders about near-term memory chip profitability.
3. Implications for Applied Materials
A protracted downturn in memory chip pricing and demand could lead major manufacturers to delay or scale back capital expenditures on wafer fabrication and testing equipment. As a primary supplier of tools for chip production, Applied Materials may face softer order volumes and longer sales cycles through the balance of the year.
