US Stock Market Move | Memory sector extends opening losses; SanDisk (SNDK.US) drops over 4%

On Monday, the memory sector extended its opening losses, with Micron Technology, Inc. (MU.US) and SanDisk (SNDK.US) dropping over 4%, SK Hynix (SKHY.US) falling more than 3%, and Western Digital Corporation (WDC.US) and Seagate Technology Holdings PLC (STX.US) declining over 2%. On the news front, South Korea's memory duo SK Hynix and Samsung Electronics came under pressure throughout the trading day in the Korean stock market on Monday, with the negative sentiment further spilling over into US equities. Market analysts believe that heavy selling by foreign investors may be a key driver of the selloff. Korea Exchange data shows that as of October 7, foreign investors' stake in Samsung Electronics fell to 46.37%, the lowest since July 16, 2009 a roughly 17-year low. Foreign holdings in SK Hynix stood at 49.59%, having remained in the 49% range for eight consecutive trading days since falling below 50% at the end of last month. Additionally, Morgan Stanley noted that the unprecedented global AI boom is creating a memory chip super-cycle with stronger demand and longer duration, but the inevitable traditional boom-bust cycle pattern of supply expansion, price changes, and earnings volatility still exists. What the upcoming earnings season truly needs to validate is whether these memory chip giants can continue to generate incremental growth beyond expectations after their record profits.