SanDisk Selloff Explained: Why investors are moving away from the memory chip giant

Global semiconductor stocks including SanDisk, Nvidia, SK Hynix and ASML faced selling pressure amid concerns over China's growing chip capabilities and the sustainability of massive AI infrastructure spending. The blockbuster Shanghai listing of Chinese memory-chip maker ChangXin Memory Technologies (CXMT) intensified fears of rising competition, supply pressure and pricing challenges for established memory players. The selloff reflects a broader rotation away from AI hardware stocks, with investors becoming more selective about valuations and earnings prospects.