Memory stocks fall despite record profits as market doubts supercycle

The divergence between record profitability and steep share declines suggests the market is pricing the durability of memory earnings rather than their current level. What matters is the deceleration in DRAM contract price growth, which points to easing pricing power even as margins stay elevated. This affects memory makers and the broader semiconductor supply chain tied to their capex and output decisions. Whether the price-growth slowdown proves a normalizing pause or the start of a genuine cycle turn is the open question, and it will shape how the sector's earnings trajectory is read from here.