Shares of memory chip manufacturers have plummeted by as much as 50% over the past three weeks, marking a sharp reversal in the sector's recent momentum.
The steep decline reflects growing investor caution regarding capital spending levels and valuation multiples in the artificial intelligence hardware supply chain.
Despite the volatility, some fund managers are holding their positions.
Murilo Freiberger, a portfolio manager at Dahlia Capital, described the period as intensely stressful, noting that the market turbulence has aged him "three years" in just a few weeks.
Nevertheless, Freiberger maintains his bullish stance on the broader AI theme, distinguishing between short-term price corrections and the underlying structural demand for semiconductor capacity.
The sell-off in memory stocks coincides with broader headwinds facing the AI hardware rally.