Samsung’s latest quarterly results were one factor behind the pullback. The company disappointed investors looking for stronger AI memory performance, suggesting that expectations for the memory sector may have become too optimistic. According to TrendForce, conventional DRAM contract prices are expected to rise 13% to 18% quarter over quarter in the third quarter, while NAND Flash contract prices are forecast to increase 10% to 15%, both marking a slower pace of price growth than in the previous quarter.
Investors also had to digest a new antitrust lawsuit alleging that Micron, Samsung, and SK hynix coordinated DRAM supply reductions to support higher prices. While the claims have yet to be tested in court, the lawsuit introduced a legal risk for the industry’s three largest memory manufacturers.
Reports suggesting Meta could eventually commercialize excess AI computing capacity added to concerns about future AI infrastructure spending. If hyperscalers find ways to generate more value from existing capacity, they may eventually need to invest less aggressively in expanding their data center footprints.
Micron CEO Sanjay Mehrotra’s sale of approximately $46 million worth of company stock drew additional scrutiny as well. Although the transactions were executed under a prearranged Rule 10b5-1 trading plan, their timing near the stock’s recent highs did little to improve investor confidence during an already volatile period.
