Why are Micron, SK Hynix, and SanDisk stocks falling on Friday?

What happened

Micron, SK Hynix and SanDisk stocks fell sharply on Friday after weak Amazon and Intel results sparked a technology and semiconductor sell-off. Micron fell about 5%, SK Hynix over 7% and SanDisk more than 10%, even though SanDisk reported better-than-expected results and an upbeat outlook.

Confirmed

Global impact / market context

Memory chip makers are tied to spending on data centers and devices, so Amazon's $220 billion capital spending plan and Intel's weak outlook raise doubts about chip demand and the cost of expanding factories. That can pressure revenue, profits and cash available at companies in this industry.

Analyst inference

The Philadelphia Semiconductor Index slid more than 6% and the Nasdaq fell over 2%, showing investors sold chip stocks broadly rather than judging each company separately. SanDisk's strong results still lost to valuation concerns, which means sentiment toward the technology sector is driving prices right now.

Analyst inference

What to watch

1. Amazon kept its 2026 capital spending forecast of $220 billion and reported negative free cash flow for a second straight quarter, with the deficit widening from the prior period. Confirmed
2. Watch whether Amazon adjusts that $220 billion capital spending plan, since any cut would directly reduce orders for memory chips used in data centers. Proposed
3. Track Intel's guidance and factory expansion costs for signs that chip demand is weakening, which would hit Micron, SK Hynix and SanDisk revenue and investor positioning in the sector. Analyst inference

Evidence

• invezz.com