Micron Plunges 7% on July 7 as Memory Chip Peak Concerns Mount Despite Samsung's Q2 Beat

According to E Daily, Micron shares plunged 7% on July 7 after Samsung Electronics reported Q2 operating profit of 8.94 trillion won, beating market expectations of 8.7 trillion won. However, investors focused on concerns that the memory chip market is approaching a cyclical peak, triggering broad selloffs across the sector. SanDisk dropped nearly 11%, Western Digital and Seagate fell 10% and 7% respectively.

Analysts noted that rising memory and storage chip prices could dampen demand as companies face higher costs. Ted Mortenson, managing director at Baird, said price increases are entering a phase where they may begin to slow demand, potentially keeping the market in temporary slowdown until 2028 or 2029 when supply and demand balance.