Analysis: U.S. Stock Market Storage Sector Pullback Possibly Due to Samsung and SK Hynix Supply Expansion Expectations

Odaily Planet Daily News – The U.S. stock market's storage sector came under pressure after today's opening, with significant declines in the stock prices of Micron Technology and SanDisk. Analysts pointed out that Samsung and SK Hynix previously announced an investment plan of approximately 800 trillion Korean won to build new chip manufacturing hubs, which together account for about two-thirds of global storage chip capacity. This new capacity plan may create fresh pressure on the supply curve expectations for FY27–FY28, reigniting market discussions about the industry's supply-demand balance. The current market reaction has shown divergence: DRAM/NAND direct stocks are under more noticeable pressure, while companies focused on storage architecture or hard drive businesses are relatively more resilient. Industry insiders believe that this news does not alter the short-term supply-demand dynamics for the second half of 2026 but may weaken the market's recent optimism about "supply discipline driving price increases." Moving forward, the industry will still need new price or demand data to support the valuation expansion narrative. (APNews)