Memory stocks down an average of 45% from their 2026 peak... JPMorgan assesses supply-demand as tight

Major memory-chip stocks have fallen an average of roughly 45% from their 2026 peaks, even as JPMorgan's latest memory-sector report finds DRAM and NAND flash supply-demand conditions remain tight and long-term supply contracts are broadening in scope. The same report notes the Philadelphia Semiconductor Index is down about 29% from its recent high, though the two figures are measured from different reference points and do not represent identical-period returns. JPMorgan attributed market anxiety to concerns over financing AI investment, power-supply bottlenecks, and returns on capital spending. The divergence matters because it suggests equity valuations are pricing in a cyclical downturn that industry fundamentals do not yet confirm. What to watch next is whether tightening DRAM and NAND availability and expanding long-term contracts translate into firmer pricing and earnings, or whether AI capex funding and power constraints weigh further on the group.