Shares of major memory chipmakers and neocloud operators climbed in overnight trading Sunday, offering tentative relief after a punishing week for AI-linked stocks.
Micron (NASDAQ: MU) gained 2.5% in the session, while SanDisk (NASDAQ: SNDK) and Western Digital each rose approximately 1% after a week of heavy selling pressure.
SanDisk shed over 29% across the week, marking its worst weekly performance in more than a year and cementing its position as the biggest loser in the S&P 500 index.
CoreWeave (NASDAQ: CRWV) and Nebius each rose about 1.2%, while IREN (NASDAQ: IREN) added 1% after all three stocks declined between 17% and 19% during the prior week.
U.S. semiconductor stocks have pulled back sharply as investors lock in profits following an extended AI-driven rally and rotate capital into large-cap software and internet names.
A combination of rising Treasury yields, renewed inflation concerns stemming from higher oil prices, and escalating U.S.-Iran tensions added further pressure to an already stretched sector.
Uncertainty over whether hyperscalers would maintain their massive AI infrastructure spending commitments, made at the start of the year, compounded the broader selloff.
The iShares Semiconductor ETF, SOXX, entered bear-market territory, declining 22% from its June 22 peak, though analysts broadly characterize the move as a correction and sector rotation rather than a structural breakdown in the AI investment cycle.
Investors are now watching upcoming earnings from companies including Alphabet and Intel for fresh signals that enterprise demand for AI infrastructure remains intact.
Retail sentiment on Stocktwits reflected cautious optimism, with traders rated as “bullish” on MU, SNDK, CRWV, and IREN, and “extremely bullish” on NBIS, while the overall SOXX sentiment reading held at “neutral.”
One trader on the SOXX Stocktwits stream wrote, “SOXX semiconductor stocks are now experiencing their biggest pullback in the past year… The key question now is whether this is just a healthy correction within the semiconductor cycle or the beginning of a deeper move lower.”
Retail interest in SanDisk remained particularly strong, with one trader writing, “$SNDK Just bought more. It’s growing 150% a year. It’s down 40% for the month from the AI correction. A no-brainer to accumulate. They locked in a multi-billion dollar deal with Facebook to provide memory chips over the next few [years].”
That same trader projected SanDisk shares could increase roughly three times in value over the next five years, reflecting the conviction some retail participants hold despite the recent downturn.
On the neocloud side, one trader highlighted that CoreWeave serves as the compute supplier for China’s Moonshot AI, whose latest Kimi K3 model is said to be competitive with leading models from OpenAI and Anthropic.
