Memory and storage stocks that dominated the first half of 2026 are now struggling to regain momentum as growing concerns about the artificial intelligence market overshadow their strong fundamental backdrop. According to The Economic Times, while Sandisk Corp, Micron Technology, Western Digital Corp and Seagate Technology remain among the top-performers in the S&P 500 Index this year, the shares are way off their highs and appear to be stuck trading around where they were in May. The Economic Times reports that Sandisk and Western Digital fell Friday morning, while Micron and Seagate rose slightly, marking a substantial change from the momentum that had driven these stocks through the first half of the year.
Indian investors are expanding their US technology stock portfolios beyond the traditional AI leaders, with memory and storage companies gaining significant traction. According to data from international brokerage platforms Appreciate and Vested Finance, this shift represents a notable evolution in the semiconductor sector preferences among Indian investors. The diversification trend suggests growing investor sophistication in understanding the broader semiconductor ecosystem beyond the high-profile AI applications.
Despite the diversification trend, Nvidia continues to dominate Indian investor interest in US technology stocks. As reported by Financial Express, Nvidia remains the most-bought US stock among Indian investors, accounting for approximately 20% of all buy orders across the platform's top 10 most-bought stocks this year. The stock maintains a commanding lead over other AI-related companies, with its position 1.6 times higher than the second-place stock in the category.
The memory and storage sector has experienced a dramatic reversal from its earlier momentum. According to The Economic Times, Sandisk and Western Digital dropped more than 30% from their peaks, while Seagate and Micron declined roughly 20% from their highs. This represents a significant shift from midway through 2026, when every member of the group had more than tripled for the year, led by Sandisk's 858% surge from the start of January through June 30. The Economic Times notes that Sandisk was the most 'over-owned' large-cap tech stock relative to its weight in the S&P 500 in the second quarter, according to Morgan Stanley.
Despite the current volatility, industry experts remain optimistic about the memory sector's long-term prospects. The Economic Times reports that Micron trades for 6.5 times earnings expected over the next 12 months, while Sandisk's multiple is 7.3, putting both among the 10 cheapest stocks in the technology-heavy Nasdaq 100 Index. Bank of America named Micron one of its 'select opportunities' following the selloff, with analyst Vivek Arya calling the recent decline an 'enhanced buying opportunity'. Dave Mazza, CEO of Roundhill Financial, noted that "the sector is still trading on positioning while fundamentals keep getting stronger underneath," suggesting potential for recovery as investors focus on improving fundamentals rather than momentum concerns.
