Shares of SanDisk, Seagate, and Micron have plummeted amid fears of a looming memory supply glut. Over the past 24 hours, SanDisk fell 14.13%, Seagate dropped 10.38%, and Micron declined 5.49%, erasing significant gains from earlier in 2026. The downturn follows warnings from Morningstar's Lorraine Tan about potential oversupply from Samsung and SK Hynix, coupled with a plateau in AI capital spending. The market's concerns were exacerbated by Meta Platforms' announcement of a new cloud service to sell excess AI computing power, suggesting a potential capex ceiling. This news contributed to a broader selloff in AI-related stocks, impacting memory and storage companies. Additionally, an antitrust lawsuit against Samsung, SK Hynix, and Micron for alleged DRAM price inflation has intensified scrutiny. Despite the bearish sentiment, some analysts remain optimistic. Bank of America and Citi have both raised their price targets for SanDisk to $2,500, maintaining a Buy rating. Micron's recent financial performance, including a 346% year-over-year revenue increase, highlights ongoing strength in the sector, though the market remains cautious about future developments.