Memory chip stocks fell again overnight after Qualcomm weak smartphone results gave investors another reason to worry about consumer electronics demand. Micron, Sandisk, and SK hynix each dropped around 2.5 percent in overnight trading, according to TipRanks, extending a brutal week for the sector. The move came after Micron tumbled 7 percent, Sandisk lost 8 percent, and SK hynix retreated 5 percent in Wednesday regular session, a selloff that started with midterm election worries about data center construction and deepened when Qualcomm reported.
The direct answer to the question on every chip investor mind is simple: this is a follow-on selloff, not a new earnings miss from the memory makers themselves. Micron, Sandisk, and SK hynix have all reported strong recent results. What changed is the outlook for their customers. Qualcomm handset chip sales fell 26 percent year over year, and Qualcomm said rising memory costs are pushing up phone prices and hurting demand. If phones sell less, or cost more to build, memory orders can slow, and traders are selling first and asking questions later.
Quick Facts
| Detail | What is known |
|---|---|
| Stocks falling overnight | Micron, Sandisk, SK hynix, each down around 2.5 percent in overnight trading |
| Wednesday regular session | Micron down 7 percent, Sandisk down 8 percent, SK hynix down 5 percent |
| Trigger | Qualcomm fiscal fourth quarter results, handset sales down 26 percent to 5.14 billion dollars |
| Qualcomm earnings | Adjusted earnings 2.17 dollars per share, beating 2.16 dollar estimate, revenue 10.32 billion dollars |
| Qualcomm guidance | Fiscal first quarter earnings 2.15 to 2.35 dollars per share, midpoint below analyst expectations |
| First selloff cause | Democratic midterm wins raised fears of tighter limits on data center construction |
| Micron recent results | Fiscal fourth quarter revenue 54.23 billion dollars, up 379 percent year over year, gross margin 87 percent |
| Micron outlook | Fiscal first quarter revenue guided at 61.5 billion dollars |
| Wall Street view on Micron | Strong Buy consensus, 28 Buys and 1 Hold, average target 1,621.67 dollars, about 104 percent upside from Wednesday close |
| Sandisk recent results | Fiscal first quarter revenue 11.03 billion dollars, up 378 percent year over year |
| Sandisk analyst view | 15 Buys against 3 Holds, average target 268.50 dollars, about 88 percent upside |
| SK hynix recent results | Record third quarter results reported in late October 2026 |
How Qualcomm Earnings Hit Memory Stocks
Qualcomm results were mixed, and the market focused on the weak part. Adjusted earnings of 2.17 dollars per share beat the Wall Street estimate of 2.16 dollars, and revenue of 10.32 billion dollars beat expectations of 10.12 billion dollars. But handset operations, the core of Qualcomm chip business, saw sales plunge 26 percent year over year to 5.14 billion dollars. Qualcomm also guided fiscal first quarter earnings at 2.15 to 2.35 dollars per share, against analyst expectations of 2.29 dollars, and said its forecast includes no further chip sales to Apple.
That last point connects directly to memory makers. Qualcomm said a global memory shortage is pushing up handset prices, and higher prices are cutting demand. Counterpoint Research figures cited by Reuters put worldwide smartphone shipments down 20 percent in the September quarter, to their lowest in 14 years, as rising memory costs pushed up phone prices. If consumers buy fewer phones, or wait longer to upgrade, then phone makers order fewer memory chips. That logic is why Micron, Sandisk, and SK hynix fell even though their own recent earnings were strong. Traders are pricing in a demand slowdown before it shows up in memory company order books.
Why Wednesday Was Already Bad Before Qualcomm
The memory selloff did not start with Qualcomm. Wednesday regular session already saw Micron down 7 percent, Sandisk down 8 percent, and SK hynix down 5 percent, after sweeping Democratic victories in the United States midterm elections raised concerns about tighter restrictions on data center construction. Data centers are the biggest growth engine for high bandwidth memory, the advanced chips used in AI processors. Any policy that slows data center building, or raises its cost, hits memory demand directly.
That fear also fits a wider market pattern from the same week. Stocks slid globally on November 4 on AI and data center worries, even as the Dow jumped more than 1,100 points on divided government optimism in a separate reaction to the election result. In other words, investors were sorting winners from losers, not selling everything. Memory makers, whose growth depends on both AI data centers and consumer phones, got hit from both sides at once: policy risk on the data center side, and demand risk on the phone side.
Strong Results Versus Falling Shares
The odd part of this selloff is how good the underlying numbers still look. Micron fiscal fourth quarter revenue reached 54.23 billion dollars, up 379 percent year over year, with adjusted gross margin climbing to 87 percent, driven by high bandwidth memory demand for AI processors. Micron also guided fiscal first quarter revenue at 61.5 billion dollars, reflecting continued strength in data center investment. Sandisk reported fiscal first quarter revenue of 11.03 billion dollars, up 378 percent year over year. SK hynix reported record third quarter results in late October.
Wall Street analysts have not changed their minds yet. Micron carries a Strong Buy consensus from 28 Buys and 1 Hold, with an average 12 month price target of 1,621.67 dollars, implying about 104 percent upside from Wednesday closing price. Sandisk has 15 Buy ratings against 3 Holds, with an average target of 268.50 dollars, implying about 88 percent upside. Those targets look odd next to falling prices, but they show the split in the market: analysts are valuing the AI memory cycle, while short term traders are reacting to phone demand and election headlines. Both views can be true at once, on different time horizons.
What Sandisk and SK Hynix Face Specifically
Each memory maker has a different weak spot. Sandisk faces particular uncertainty because of its heavy exposure to NAND flash memory, which is widely used in smartphones, computers, and cloud storage. That makes Sandisk more sensitive to a phone slowdown than a pure AI memory play. SK hynix, the South Korean maker, has also suffered from the broader semiconductor selloff despite its record third quarter, showing that even strong results do not protect a stock when the whole sector is being repriced.
Micron, by contrast, is the most directly tied to AI data centers through high bandwidth memory, so its fate depends more on whether data center building actually slows, or whether the election reaction was an overreaction. If data center spending stays strong, Micron recent guidance suggests its growth story is intact. If phone demand keeps falling and memory prices stay high enough to hurt phone sales, all three makers could see orders soften in the coming quarters. That is the question the next earnings reports will answer.
What Investors Should Watch Next
Three things will decide whether this selloff reverses or deepens. First, phone shipment data for the holiday quarter, which will show whether higher prices really cut demand or just delayed purchases. Second, any concrete policy moves on data centers after the midterms, as opposed to campaign fears. Third, memory pricing itself: if memory stays scarce and expensive, phone makers suffer, but memory makers earn more per chip, which can offset lower volumes. Qualcomm finance chief Akash Palkhiwala said baseline gross margin should return to its usual 48 to 50 percent band by fiscal second quarter, a sign that cost pressures may ease over time.
None of that makes the overnight drop painless for shareholders. A 7 to 8 percent daily fall, followed by another 2.5 percent overnight, is a sharp correction by any measure. But corrections in a fast growing sector are normal, and the analyst targets show that professional investors still see long term value here. Short term traders are selling a demand scare. Long term holders are betting the AI memory cycle outlasts it. The next few weeks of phone sales and policy news will show which group was right.
Frequently Asked Questions
Why did Micron, Sandisk, and SK hynix fall overnight?
They extended Wednesday losses after Qualcomm reported handset chip sales down 26 percent, raising fears that weaker phone demand and higher memory costs will slow memory orders.
Did Micron report bad earnings?
No. Micron fiscal fourth quarter revenue was 54.23 billion dollars, up 379 percent year over year, with an 87 percent gross margin. The selloff is about outlook and sector fears, not a Micron earnings miss.
How far did the stocks fall on Wednesday?
In Wednesday regular session, Micron fell 7 percent, Sandisk fell 8 percent, and SK hynix fell 5 percent, before each dropped around 2.5 percent more in overnight trading.
What do analysts still expect for Micron?
Wall Street still rates Micron a Strong Buy, with 28 Buys and 1 Hold and an average 12 month target of 1,621.67 dollars, implying about 104 percent upside from Wednesday close.
Sources
TipRanks reported the overnight drops of around 2.5 percent, the Wednesday falls, Qualcomm earnings details, and the analyst ratings and targets. QUE reported Qualcomm handset sales, guidance, automotive record, and data center plans. SourceFirstNews reported Qualcomm revenue, Apple sales guidance, and Counterpoint shipment figures via Reuters.
Final Thoughts
This is a classic case of good companies caught in a bad news cycle. Memory makers just posted huge growth, yet their shares fell because their customers are struggling and their biggest growth market faces new political questions. That tension will not last forever. Either phone demand recovers and data center spending stays strong, in which case the selloff looks like a buying opportunity, or demand really does slow, in which case the next earnings reports will confirm it. Until then, the overnight drop is a warning, not a verdict, and investors should watch phone sales and data center policy more closely than daily price moves.
Read more on the site: Qualcomm Q4 earnings and the 26 percent handset sales fall and Global stocks slide on AI and data center fears.
