SanDisk shares crash 10% as AI chip selloff spreads to memory stocks

A selloff in global memory and AI chip stocks deepened, with SanShares falling 10% and Samsung Electronics dropping 6.9% in Seoul despite forecasting a 19-fold jump in second-quarter operating profit. The trigger included a Reuters report that Chinese AI startup DeepSeek is developing its own AI chip, raising concerns of market fragmentation and reducing reliance on Nvidia and Huawei. Investors are growing wary that memory and AI-related stocks may be near a cyclical high after doubling earlier this year.