Markets returned from the extended US weekend to a mixed session, with the Nasdaq Composite falling 1.11% to 26,222 as profit-taking hammered megacap growth names while memory and storage stocks surged to fresh highs on relentless AI infrastructure demand.
The Nasdaq’s decline masked a dramatic rotation beneath the surface. SpaceX shares plunged 9% in early trading to extend losses into a third consecutive session, continuing a sharp reversal from the euphoria that followed its blockbuster initial public offering. The space and satellite company has now shed more than 20% from recent peaks as concerns mount over its balance sheet, pending lock-up expirations, and stretched valuation.
Memory Leading, Alphabet Shares Lag
Meanwhile, memory and storage names delivered spectacular gains. SanDisk shares surged 5.95% to $2,314.69, hitting new all-time highs and extending its year-to-date gain past 4,100%. Micron Technology climbed 4.34% to $1,183.25, up more than 756% over the past twelve months. Seagate Technology added 3.08% to $1,103.24, Intel gained 3.13% to $138.19, and NXP Semiconductors rose 3.52% to $324.29. Even Ross Stores, a defensive off-price retailer, jumped 3.40% to $240.72 as markets sought havens outside stretched megacap tech.
On the downside, Alphabet shares tumbled 5.55% to $347.60 as markets reassessed the cost of the company’s AI arms race. Arm Holdings fell 5.17% to $416.75 despite remaining up more than 186% year-over-year, reflecting profit-taking after a parabolic run. Booking Holdings dropped 4.22% to $164.53 on cyclical travel concerns, while Broadcom slipped 3.89% to $395.33. Amazon declined 3.67% to $235.41, and Netflix fell 3.88% to $74.38, extending a multi-month slide that has now left the streaming giant down 37% over the past year.
The session’s divergence reflects a market in the midst of a high-conviction but narrow trade. Memory and storage companies are riding what executives and analysts are calling a multi-year “supercycle” driven by insatiable demand for AI training and inference infrastructure. SanDisk management has publicly stated the flash memory market will remain undersupplied for an extended period, giving the company sustained pricing power. The firm’s separation from Western Digital into a pure-play flash vehicle has amplified investor enthusiasm, with the stock now trading at levels that imply enormous future cash flow expectations.
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Micron Technology is benefiting from the same dynamics, particularly in high-bandwidth memory (HBM) used in AI accelerators. Street analysts have been steadily raising earnings estimates for 2026 and 2027 as average selling prices rise and utilization normalizes from prior cyclical lows.
Outlook
The session underscores a market willing to pay aggressively for companies with direct exposure to AI infrastructure bottlenecks, particularly memory and storage while punishing those perceived as overvalued or over-owned.
The memory supercycle thesis rests on the assumption that hyperscaler capital expenditure will remain elevated for several years and that capacity additions will lag demand, sustaining pricing power. SanDisk’s 4,100% year-over-year gain and Micron’s 756% advance suggest markets are pricing in a best-case scenario with little room for disappointment.
For the megacap growth names under pressure, the question is whether today’s rotation marks a healthy consolidation or the start of a deeper correction. Alphabet, Amazon, Broadcom, and Arm all retain strong long-term narratives tied to AI, cloud computing, and digital transformation. However, after extraordinary gains over the past year, markets appear less willing to give these companies the benefit of the doubt on near-term execution or margin pressure from AI investments.
