# Micron, Seagate, Western Digital sink as chip sell-off deepens

Digest AI · Business & Funding · published 2026-10-13T13:51:11Z

Canonical: https://digestai.news/story/micron-seagate-western-digital-sink-as-chip-sell-off-deepens

## Summary

Chip stocks fell on Tuesday, extending a sell-off sparked by worries over artificial intelligence financing and intensifying competition. Micron slipped about 5%, SanDisk fell 5%, while Seagate and Western Digital both dropped 6%. The declines followed a weak session on Wall Street, where the Nasdaq Composite dropped 0.44% on Monday. Investors assessed intensifying competition from China's ChangXin Memory Technologies (CXMT), which announced progress in developing a new chip architecture to increase memory density. Analysts see CXMT as trailing U.S. and South Korean memory leaders, but note any advancement could add more competition. CXMT shares closed 2.8% lower in Shanghai. SK Hynix's U.S.-listed stock was down around 5% in premarket trading and plunged more than 10% in regular trading, hitting its lowest level since August. Samsung Electronics shed 7.4%. In Japan, SoftBank Group sank 8.5%, Tokyo Electron dropped 7.2%, Advantest declined 2.9%, Lasertec fell over 5%, Disco lost 4.7% and Renesas Electronics shed 5.9%. European chip stocks also sank, with ASML down 3.3%, and STMicroelectronics and Infineon both down 5%. Dutch firms BE Semiconductor and ASM International were both around 4% lower at the open. The sell-off reflects broader anxiety over the AI trade rather than a fundamental shift in the competitive landscape, according to Phillip Wool of Rayliant Global Advisors, who cautioned that the market reaction appeared disproportionate to the immediate competitive threat from CXMT.

## Key points

- Micron slipped about 5%, SanDisk fell 5%, Seagate and Western Digital both dropped 6%
- SK Hynix plunged more than 10%, Samsung Electronics shed 7.4%, both hitting lowest levels since August
- Nasdaq Composite dropped 0.44% on Monday, extending the sell-off into Tuesday

## Why it matters

The sell-off highlights how AI-driven market sentiment can trigger broad semiconductor declines, even when competitive threats from Chinese memory makers remain limited in the near term, affecting investor confidence in AI-related infrastructure.

## Sources

1. [Micron, Seagate, Western Digital sink as chip sell-off deepens](https://cnbc.com/2026/10/13/sk-hynix-softbank-samsung-electronics-shares-tech-stocks-fall.html) (CNBC Technology, 2026-10-13)

## Cite

Digest AI, "Micron, Seagate, Western Digital sink as chip sell-off deepens", 13 October 2026, https://digestai.news/story/micron-seagate-western-digital-sink-as-chip-sell-off-deepens

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