Semiconductor stocks retreat over worries about memory costs
Yahoo Finance ·
Semiconductor stocks retreat over worries about memory costs Ines Ferré · Senior Business Reporter Fri, June 26, 2026 at 9:15 AM EDT 2 min read MU SNDK MRVL AMD QCOM What happened: Semiconductor stocks retreated on Friday. Memory and storage names led the declines, with Micron Technology ( MU ) and Sandisk ( SNDK ) stocks dropping more than 6% and Western Digital ( WDC ) losing more than 7%. Chipmakers, including Nvidia ( NVDA ), AMD ( AMD ), Broadcom ( AVGO ), Intel ( INTC ), and Marvell ( MRVL ), also moved lower. Qualcomm ( QCOM ) retreated as well, giving back some of the previous session's gains following its forecast announcement of $15 billion in new data center revenue . Among semiconductor equipment makers, Applied Materials ( AMAT ) and Lam Research ( LRCX ) each declined more than 3%. What's behind the move: Semiconductor stocks fell amid concerns that rising memory prices could ripple across the broader tech industry, squeezing margins and weighing on demand. The sell-off came after Apple ( AAPL ) raised prices on some of its products to offset surging memory costs. Microsoft ( MSFT ) also raised prices on its current-generation Xbox consoles, fueling concerns that memory chipmakers' pricing power could eventually weigh on consumer demand if higher component costs continue to be passed through. Sentiment was also pressured by a New York Times report of a potential delay to OpenAI's expected IPO . The AI developer is seen as a bellwether of the AI trade, and a delayed IPO could be interpreted as a sign that valuations are becoming harder to justify. What else you need to know: Memory companies have been a key beneficiary of the artificial intelligence build-out, with Micron stock leading the semiconductor sector higher. The company's blowout third quarter earnings , strong forecast, and better-than-expected margins reinforced the view that memory chipmakers have both robust demand and pricing power. Micron is also attempting to insulate itself from the boom-bust memory cycle with a business model focused on locking customers into long-term contracts. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre . Read the latest financial and business news from Yahoo Finance
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