--- title: "The sharp decline in tech stocks spreads, storage chip giants face a \"collective stampede\"! Sandisk drops over 10% during trading" description: "The adjustment of storage chip stocks on Wednesday was not due to a single \"black swan.\" SanDisk's fundamentals suddenly deteriorated, and during the tech stock sell-off, big winners like SanDisk, whi" type: "news" locale: "en" url: "https://longbridge.com/en/news/274850683.md" published_at: "2026-02-04T21:00:27.000Z" --- # The sharp decline in tech stocks spreads, storage chip giants face a "collective stampede"! Sandisk drops over 10% during trading > The adjustment of storage chip stocks on Wednesday was not due to a single "black swan." SanDisk's fundamentals suddenly deteriorated, and during the tech stock sell-off, big winners like SanDisk, which had driven storage demand narratives through AI, experienced a more severe pullback. SanDisk's stock price has increased by at least over 1100% in the past six months, and after releasing its financial report last week, as of this Tuesday, the stock price had risen nearly 29% over three days This Tuesday, the technology sector sell-off triggered by software stocks is spreading, with recently popular memory chip manufacturers experiencing a "collective stampede." On Wednesday, February 4th, Eastern Time, the three major U.S. stock indices showed mixed performance, with the Dow rebounding, the S&P turning negative in the early session, and the Nasdaq opening lower and continuing to decline, indicating that funds are continuing to withdraw from the previously strong technology sector. In the early session, the Nasdaq's decline expanded to over 1%, with memory chip stocks experiencing even larger declines, showing a clear characteristic of "high-priced stocks correcting + profit-taking by funds." In the early session, SanDisk fell over 12%, Western Digital nearly 11%, Micron Technology over 9%, and Seagate Technology nearly 7%. Why did SanDisk and other memory chip stocks plummet? What is the market worried about? On the surface, the adjustment of memory chip stocks on Wednesday did not have a single "black swan," but rather resembles a concentrated pullback after multiple factors overlapped: **the overall market risk appetite weakened, individual stocks had previously risen too much, valuations and expectations were pushed to extreme positions, ultimately triggering profit-taking and short-term funds to withdraw in a stampede-like manner.** ## Fund Rotation Amplifies Technology Sector Pullback, SanDisk Faces High-Level Profit-Taking On Wednesday morning, U.S. tech stocks weakened, and market sentiment was cautious. For the high-beta semiconductor sector, once the index corrects and funds shift to defensive positions, the stocks that are most likely to be sold off first are often those that have **risen the most,** **are the most expensive in valuation,** **have the most crowded investor bets,** and **carry the heaviest options leverage.** Memory chips are in this typical position: they had previously risen continuously under the narrative of "AI driving a surge in memory/storage demand," and once the wind changes, the pullback is also more severe. In this round of memory stock performance, **SanDisk is almost the most representative "sentiment barometer."** An article from Wall Street Insight pointed out last week that SanDisk's stock price **has increased by over 1140% in six months**, making it one of the rare super strong stocks in the U.S. stock market. Such a large increase naturally gives it "bubble/sentiment trading" attributes. More critically, after SanDisk released its earnings report last Thursday, market sentiment was further ignited: since the earnings report was released after the U.S. market closed last Thursday, as of Tuesday's close, **SanDisk's stock price has cumulatively risen nearly 29% over three trading days**, with a steep short-term increase. Against this backdrop, the sharp drop in the early session on Wednesday seemed more like a "technical pullback after rapid gains": when short-term funds realized that "the good news has been fully priced in," any slight disturbance could trigger profit-taking. ## Institutions Intensively Bullish, Pushing Expectations to a Dangerous Zone It is noteworthy that after SanDisk's earnings report, a very typical market phenomenon occurred: **institutional analysts collectively raised target prices, and ratings surged**, forming a positive feedback loop of "the more it rises, the more optimistic it becomes." Last week, after SanDisk released its financial report, several institutions issued recommendations and proposed highly impactful target prices such as **$750 and even $1000**, based on the logic of "AI servers driving storage demand upward." However, for the market, this kind of "stacked target price increase" often has two sides: - On one hand, it strengthens the confidence of the bulls, pushing the price higher in the short term; - On the other hand, it can lead to the stock price exhausting a large amount of expectations in a very short time, making the trading structure more fragile. When market sentiment begins to cool, high target prices will not provide support; instead, they will be interpreted as: **"Expectations have been fully priced in, and further upward movement requires stronger realization."** This will directly increase the probability and magnitude of a pullback. ## No matter how good the financial report, "high expectations" can become a selling point after positive realization From the financial report perspective, the performance released by SanDisk last week was an important catalyst for this round of short-term acceleration. Wall Street Insights previously summarized SanDisk's financial report: the market focused on its AI-related storage demand, price improvements, and clues about the industry's recovery. However, in the case of "stock prices surging in advance," financial reports often fall into a typical dilemma: > **The financial report does not need to be bad; as long as it does not continue to exceed extremely optimistic expectations, it may trigger profit-taking.** In other words, when the market has already factored in "explosive AI memory demand + price increases + cyclical reversal" into the valuation, the marginal increment from the financial report becomes increasingly difficult. Therefore, Wednesday's decline was more about **the cooling of overly enthusiastic sentiment after the financial report**, rather than a sudden deterioration of the fundamentals. ## Sector "rise and fall together": Storage chain is inherently strongly correlated, making pullbacks easy to resonate Another characteristic of Wednesday was that not only did SanDisk decline, but **Western Digital, Micron, Seagate, and other storage chain companies almost fell simultaneously**. The reason lies in the highly consistent trading logic of the storage sector: - Demand side: AI servers, cloud capital expenditures, enterprise storage - Supply side: Capacity, inventory, price cycles - Price side: Expectations of rising NAND/DRAM prices When "risk appetite weakens + high-level profit-taking" begins to occur, funds will not just sell one company but tend to **directly reduce exposure across the entire storage chain**, causing sector resonance. ## What will the market focus on next: "short-term bubble bursting" or "economic recovery being falsified"? Currently, the sharp drop in the early morning of Wednesday aligns more with the characteristics of "rapid bubble bursting at high levels," rather than a fundamental reversal. To determine whether this round of pullback can be halted, the market will focus on three clues: - **Storage prices**: Whether the rise in NAND/DRAM prices continues to materialize; - **Cloud giants' capital expenditures and AI server demand**: Whether there are signs of cooling; - **Company guidance and channel inventory**: Whether there is repeated pressure to destock. If the above indicators remain strong, the market may view Wednesday's sharp decline as a "deep pullback within a strong trend"; conversely, if prices and demand show marginal weakness, the valuation pullback of storage stocks may continue ### Related Stocks - [XSD.US - SPDR S&P Semicon](https://longbridge.com/en/quote/XSD.US.md) - [SNDK.US - Sandisk](https://longbridge.com/en/quote/SNDK.US.md) - [SOXX.US - iShares Semiconductor ETF](https://longbridge.com/en/quote/SOXX.US.md) - [SMH.US - VanEck Semiconductor ETF](https://longbridge.com/en/quote/SMH.US.md) - [FTXL.US - First Trust Nasdaq Food & Semicon](https://longbridge.com/en/quote/FTXL.US.md) - [SOXQ.US - Invesco PHLX Semiconductor ETF](https://longbridge.com/en/quote/SOXQ.US.md) - [SOXL.US - Direxion Semicon Bull 3X](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | “全市場的希望”！美股科技股陷入 2022 年來最糟開局，英偉達業績成扭轉頹勢關鍵 | 美股科技股創 2022 年以來最差開局，軟件板塊因 AI 顛覆擔憂重挫 23%。儘管能源等板塊補位支撐大盤橫盤，但科技股 33% 的高權重仍是上行枷鎖。市場正屏息等待英偉達週三財報，其業績與指引將成為驗證 “AI 投資回報” 的關鍵支點，決 | [Link](https://longbridge.com/en/news/276893311.md) | | AMD 與 Meta 簽 5 年 AI 晶片訂單 股價升近 9% Meta 可買最多 1.6 億股 AMD | Meta 與 AMD 達成為期五年的合作協議，Meta 將購買 AMD 最新的 AI 晶片，算力最高達 6 吉瓦，交易價值超過 1,000 億美元。同時，Meta 可分階段購買最多 1.6 億股 AMD 股票，AMD 股價因此上漲近 9%。 | [Link](https://longbridge.com/en/news/276821466.md) | | 觀望財案及滙控業績 市場暫未有方向｜古天后 | 2 月 25 日，美股在大型企業合作協議的推動下回升，道指上漲 370 點，標指和納指也有所上漲。Meta 與 AMD 達成合作，Meta 將採購 AMD 晶片並獲得認股權，AMD 股價上漲 8.8%。儘管美股回暖，加密貨幣市場依然疲弱，比 | [Link](https://longbridge.com/en/news/276813442.md) | | 以色列的 Valens Semiconductor 因音視頻市場的復甦而在第四季度表現出色 | Valens Semiconductor 在第四季度報告了同比增長 22% 的收入，超出分析師預期。調整後的每股收益符合預測，公司宣佈了一項每年節省 500 萬美元的計劃。對於 2026 年第一季度，Valens 預計收入將在 1630 萬 | [Link](https://longbridge.com/en/news/276880129.md) | | 存儲芯片漲價或將貫穿全年，中國產業崛起成 “勝負手” | 當前 DRAM 與 NAND 庫存僅夠維持約 4 周，價格持續上漲已成定局。全球存儲市場在 AI 及算力發展推動下，預計 2026 年將持續漲價。SK 海力士表示，客户需求無法完全滿足，導致價格預期上升。中國存儲產業如長江存儲、長鑫科技等企 | [Link](https://longbridge.com/en/news/276803677.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.