Memory stocks slide into another bear market as chip losses near $2.5 trillion: Chart of the Day

AI's appetite for memory keeps growing while investors' appetite for memory stocks is shrinking.

The Roundhill Memory ETF ( DRAM ) entered another bear market this week, falling more than 20% from its September rebound high. Losses deepened Thursday, leaving the fund roughly 22% below that peak and nearly 40% below June's record close.

It's been an expensive round trip. DRAM plunged nearly 45% from June to late July, then rallied over 40% into September. The latest selling has erased more than three-quarters of that recovery.

Samsung Electronics ( 005930.KS ), Micron ( MU ), SK Hynix ( SKHY ) and Sandisk ( SNDK ) — all DRAM components — have shed more than $700 billion in combined market value since October 6. A broader Yahoo Finance basket of 61 semiconductor and storage stocks has lost nearly $2.5 trillion.

Samsung plunged nearly 10% Thursday in Seoul, before US trading began. The subsequent US rebound helped Micron finish nearly 2% higher, but the iShares Semiconductor ETF ( SOXX ) still posted its eighth straight decline — its longest losing streak since October 2008.

Strong demand hasn't stopped investors from questioning future profits.

China's CXMT ( 688825.SS ) has announced progress on a denser memory-chip design , raising concerns about competition and pricing power. Yet the challenger fell, too — over 5% Thursday, leaving it down roughly 20% since September's end. DRAM holds it as well, with roughly 5% exposure as of September 30.

Meanwhile, chipmakers helping finance their customers are attracting more scrutiny. That doesn't mean AI demand has disappeared. TSMC ( TSM ) reported another record quarterly profit Thursday. Investors are questioning how much of the boom will reach shareholders.

DRAM's next major test sits around its late-July lows near $45 — another 9% below Thursday's close. Holding there would preserve the summer trading range. A sustained break would erase the rebound entirely.

Internal AI tools helped analyze interview transcripts, research, and draft this post. Humans reviewed, edited, and fact-checked this post before publication.

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.