US Stock Market Move | Storage concept shares tumble, SanDisk (SNDK.US) drops nearly 10%

On Thursday, the concept of storage overall fell, with SanDisk (SNDK.US) dropping nearly 10%, Western Digital Corporation (WDC.US) falling over 6%, Micron Technology, Inc. (MU.US), and Seagate Technology Holdings PLC (STX.US) dropping over 3%. The main driving force behind the rise in storage chip stocks is the AI infrastructure spending boom, as well as the surge in demand leading to price increases for storage chips and other components. However, many investors question whether such a huge increase is reasonable, especially as more and more people doubt whether AI-related capital spending can continue at the current pace without significant signs of return. Peter Anderson, Chief Investment Officer of Anderson Capital Management, said, "Given the backdrop of AI data center construction, the recent strong performance seems reasonable on the surface, but I am increasingly concerned that the market's expectations for future demand are too optimistic and underestimate the risks of historical cyclicality, overcapacity, and price pressures."