Highflying memory chip stock Micron Technology was down 13% Tuesday as the tech selloff gathered pace, its largest drop in more than a year.
Fellow memory-chip makers SK Hynix and Samsung also fell—dragging down South Korea’s red-hot KOSPI index, which closed 10% lower. That was a bad omen for Micron shares, which slumped to $1,054.89 on Tuesday, placing them second-worst in the S&P 500, and the biggest percentage drop for a day since April 3, 2025, according to Dow Jones Market Data.
The KOSPI has been the hottest stock market in the world over the past 18 months—and is still up 95% in 2026 despite its 10% slump Tuesday.
Tech giant SK Hynix and Samsung both fell more than 12%. The tech weakness extended into U.S. trading, with the tech-heavy Nasdaq down 2.1%.
Micron, SK Hynix, and Samsung have all racked up massive gains in 2026, as the boom in data-center construction drives up demand for memory chips. Micron stock has surged 273% this year, while SK Hynix and Samsung are up 292% and 159%, respectively.
Mizuho analyst Daniel O’Regan said a Counterpoint Research note calling for potential memory-price weakness in 2027 could be a factor. “I don’t think it’s THE reason, but it’s definitely not helping,” he said.
“The possibility of a sharp price correction occurring after the second half of 2027—when the increase in supply becomes pronounced—cannot be entirely ruled out,” the note read, according to a translation by Mizuho.
Investors are also worrying that so-called hyperscalers won’t be able to continue spending at this rate on artificial intelligence.
The market may also be fretting that the Federal Reserve will raise interest rates more than once in 2026 to combat a flare-up in inflation. Higher borrowing costs tend to hurt tech stocks because they make yield-bearing investments like bonds more attractive and chip away at future cash flows.
Hold on to your hats.