Micron Technology shares tumbled 5.03% in pre-market trading on Thursday, caught in a broad selloff across the memory and storage sector after disappointing forward guidance from industry peers Sandisk and Western Digital.

The rout was sparked by Sandisk's fiscal fourth-quarter report, which despite beating expectations on both revenue and earnings, issued revenue guidance for the upcoming quarter with a midpoint of approximately $10.55 billion — falling short of Wall Street's consensus estimate of $11.16 billion. Western Digital also failed to impress investors, with its quarterly forecast merely in line with expectations rather than delivering the upside surprise the market had priced in following its strong year-to-date rally. Sandisk shares dropped over 8% in pre-market, while Western Digital tumbled more than 14%.

Although Micron makes different products than Sandisk and Western Digital, the three stocks have historically traded in tandem as momentum-driven memory plays tied to AI infrastructure demand. The guidance misses reignited concerns about how long the AI spending boom can sustain the elevated valuations across the semiconductor supply chain, prompting traders to rotate out of the sector.