tech
Memory chip stocks were the big winners of 2026
The 10-day selloff reflects investor concern that one of the industry's most powerful tailwinds may not prove as strong as previously thought.
TL;DR
- Memory chip stocks, led by Micron Technology and Sandisk, are declining due to Google's new TurboQuant compression technique.
- TurboQuant could reduce memory requirements for AI large language models by sixfold, raising concerns about AI-driven demand.
- Previously strong performers, memory stocks like Sandisk and Micron have seen significant losses after the announcement.
- Some analysts believe the sell-off is normal profit-taking after a strong rally, while others see it as a sign of emerging efficiencies that could impact demand.
- Potential beneficiaries of lower memory costs include server makers like Dell Technologies and Hewlett Packard Enterprise.