Micron Technology (NASDAQ: MU) and SanDisk shares (NASDAQ: SNDK) fell in Thursday’s pre-market trading, reversing part of Wednesday’s powerful rebound as uncertainty over Nvidia chief executive Jensen Huang unsettled the broader AI supply chain.
Micron traded at $790.92, down 2.51%, while SanDisk fell 2.95% to $948.88. Those declines followed gains of 11.89% and 13.69% in Wednesday’s regular session.
Nvidia had plunged more than 8% after hours following reports that directors were considering Huang’s removal.
Nvidia’s turmoil reverses Wednesday’s rally
Wednesday’s rebound was driven partly by CoreWeave’s latest results, which helped calm fears that large AI infrastructure projects were losing momentum. Micron closed at $811.30, while SanDisk finished at $977.69, before the mood shifted overnight.
Nvidia itself had gained during Wednesday’s regular session, closing at $173.73, but its subsequent slide spread quickly to companies linked to AI computing.
Nasdaq futures also retreated as investors reduced exposure to technology shares.
Terri-Leigh Bennett, chief operating officer at CMS Prime, told Reuters that the controversy posed a difficult problem for investors who had concentrated money in companies seen as essential to AI expansion.
That vulnerability extends beyond any one semiconductor supplier. Nvidia’s processors sit inside data centres supplied by numerous chipmakers, equipment manufacturers and cloud operators.
Questions about its leadership therefore affect expectations for projects.
Still, a sharp fall in pre-market share prices is not proof that companies are cutting investment or cancelling purchases.
Why Micron and SanDisk face different risks
Micron makes dynamic random-access memory, including high-bandwidth memory used alongside advanced AI accelerators.
Its fourth-quarter revenue reached $54.23 billion, compared with $11.32 billion a year earlier, reflecting demand and higher prices.
SanDisk specialises in NAND flash memory and solid-state storage. Fiscal first-quarter revenue reached $11 billion, up 23% sequentially, while management forecast $12.2 billion to $12.6 billion for the following quarter.
That distinction matters because a delay to Nvidia’s next accelerator platform could affect Micron’s near-term memory expectations more directly than SanDisk’s broader storage business.
Charu Chanana, Saxo Bank’s chief investment strategist, wrote on Thursday:
“The key question is whether Nvidia’s problems simply redistribute AI spending towards competitors or begin to disrupt spending itself.”
She noted that alternative accelerator platforms also require advanced memory, potentially protecting demand if spending shifts between chip suppliers.
Jim Cramer drew a sharper distinction on CNBC on Wednesday: “I’m not a SanDisk fan. I’m a Micron fan.” His preference reflects Micron’s stronger connection to high-bandwidth memory.
Is the memory boom really weakening?
The sell-off arrives despite evidence of tight supplies and rising prices.
Memory manufacturers have benefited from large data-centre budgets, although heavy investment and the sector’s history of price swings make investors wary of another cycle turning.
Morgan Stanley analyst Shawn Kim described an earlier correction as “a healthy reset” in research reported by Investing.com.
He argued that strong earnings revisions and DRAM pricing supported the industry’s outlook. His comments preceded Thursday’s leadership developments.
The next signal may come from cloud companies’ capital expenditure plans. Investors will want confirmation that new facilities remain funded and that orders are proceeding as scheduled.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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