The broader AI and semiconductor complex has posted sharp July drawdowns. Funds with heavy memory exposure, including high-profile AI books, are under pressure and reducing positions. China capacity expansion and peer earnings continue feeding the glut narrative.
Memory is a potato in the semiconductor industry – it's very easy to produce, very easy to scale, very easy to mass produce.
So China, U.S., Korea, Japan are scaling up like crazy. Meanwhile demand is expected to normalize at the end of 2026. So a glut is coming (and I'm happy -… https://t.co/mzzCwHPILc— Data Driven Stocks (@stockdatamarket) July 29, 2026
🚨Short interest in US chip equities is SKYROCKETING:
Short interest in the US Memory ETF, $DRAM, spiked to ~30%, the highest since the fund was launched in April.
This figure has more than QUADRUPLED in a matter of weeks.
Meanwhile, $DRAM is now down -44% since its June peak.… pic.twitter.com/APuD3THrRH
— Global Markets Investor (@GlobalMktObserv) July 30, 2026
SanDisk falls over -17% on the day, now down -30% in 5 days and -55% from its record high
byu/RobertBartus inEconomyCharts