TradingKey – Memory stocks continue to fall as SK Hynix plunges over 5%, leading the semiconductor sector lower.

On October 13, Eastern Time, the memory sector in the US stock market extended its decline, with related stocks generally falling in pre-market trading. Micron (MU) and Seagate Technology (STX) fell about 3%, SanDisk (SNDK) and Western Digital (WDC) fell about 4%, while SK Hynix led the losses, dropping around 5% to a low of $151.5.

SK Hynix stock price chart, Source: TradingView

This collective plunge in memory stocks indicates that the market has rapidly shifted from extreme optimism regarding the AI memory supercycle to a risk-averse phase characterized by high-level profit-taking and competitive landscape restructuring,…