The rally in memory stocks appears poised to be short-circuited. Companies like Micron and Samsung, which produce the high-speed memory that data centers crave, have collapsed in recent weeks.

Many of the industry’s previous big winners are now down 20% or more over the last month, driven by a range of factors, including valuation concerns, worries about capex reductions among AI hyperscalers, and good old-fashioned profit-taking.

Today, we’ll look at five memory stocks that have had their narrative flipped over the last month. Each stock has had its bull run snapped in the last few weeks, yet still remains overvalued with a Benzinga Edge Value score at 10 or lower.

Seagate Technology Holdings PLC

Benzinga Edge Value Score: 8.30

Seagate Technology (NASDAQ:STX) is one of the OG members of the memory stock rally, having soared by more than 800% over the last five years and by more than 400% over the last 12 months.

The company develops and sells hard disk drives (HDDs) and solid-state drives (SSDs), which are more traditional computer storage systems but are still in high demand amid the shortage.

However, the stock is now priced as a secular growth story rather than a cyclical hard-drive maker, and the valuation suggests the easy money has long been made. The stock trades at 75 times earnings and 16 times sales, and its 46% gross margins are already at all-time highs.

Seagate’s margins depend on hyperscaler capex continuing its unprecedented growth, and this singular customer base becoming a more concerning risk factor as the valuation reaches historic heights.

STX shares also face significant technical headwinds, which have driven the stock down by more than 25% over the last month. The stock has plummeted under the 50-day moving average for the first time since April 2025, taking out a strong support level that had become a reliable buying signal.

The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators have also quickly reversed into bearish territory, making this dip a risky buy for investors.

Western Digital Corp.

Benzinga Edge Value Score: 7.83

Western Digital (NASDAQ:WDC) used to produce HDDs and SSDs when it operated under the SanDisk umbrella, but now is singularly focused on NAND flash memory devices. NAND memory drives are faster and higher-density than other types of memory, making them more attractive to data centers with increasingly dense chip stacks.

After four stagnant years, WDC shares are up more than 600% in the last 12 months thanks to the data center buildout, but there’s evidence this stock is reaching its ceiling.

Technical signals are also swinging toward the bears, with the stock taking out several key support areas. The 50-day moving average has been breached for the first time in more than 12 months, and now both the RSI and MACD are trending into bearish territory.

The stock is down more than 30% over the last month, yet still trades at 28 times earnings and 16 times sales, and will need to wow the market once again when reporting fiscal Q4 2026 earnings on August 5.

Everpure Inc.

Benzinga Edge Value Score: 9.12

Formerly known as Pure Storage, Everpure (NYSE:P) is a $23 billion data storage solutions firm focused mostly on enterprise-level clients. The company began trading under its current name in mid-April and, despite some volatility, has barely budged since the name change.

Due to the nature of its business, Everpure is often a net buyer of NAND memory, and its margins (68%) have already started to decline to the low end of management’s target. The stock trades at 105 times earnings and 6 times sales, and revenue growth slowed to 15% in the most recent quarter.

Everpure hasn’t traded under its current ticker long enough to produce moving averages, but the Bollinger Bands indicate the stock is near the bottom of its trading range. P shares are only down 6% this month, a far lesser drawdown than some of its peers, and the position on the Bollinger Bands may indicate a short-term bottom. However, the MACD and RSI tell a different story, and the stock may not be ready to revert to the mean just yet.

Lam Research Corp.

Benzinga Edge Value Score: 4.47

Lam Research (NASDAQ:LRCX) is a "picks and shovels" play on the high-speed memory thesis, but many of these adjacent companies have suffered more furious drawdowns than the actual memory stocks. LRCX shares are down more than 21% in the last 30 days, and its concentration in the NAND market has become a sticking point. 

The company makes wafer fabrication equipment (WFE) specialized for NAND memory devices, leaving it on the sidelines should DRAM or HBM memory start to replace NAND. The valuation is also becoming concerning; the stock trades at 59 times earnings and 18 times sales, and the 10% single-session drop on July 2 shows how any disruption to the bull thesis can spook investors.

Like the rest of the stocks on our list, the 50-day moving average has become a battleground, but this descent wasn’t out of nowhere. The July 2nd drawdown caused a bearish cross to form on the MACD, and the RSI quickly followed below the bearish threshold of 50. Both technical indicators continue to decline, likely making it difficult for the share price to regain the 50-day moving average without a significant catalyst.

KLA Corp.

Benzinga Edge Value Score: 2.84

KLA Corp. (NASDAQ:KLAC) is another picks-and-shovels investment in the memory market, with a stranglehold on the process control segment of the wafer fabrication equipment industry. Many of the world’s top chipmakers, such as Taiwan Semiconductor and Samsung, depend on KLA’s products, and KLA doesn’t directly do business with any memory makers.

However, the company is inevitably linked to the industry thanks to its parallel products and dependence on hyperscaler capex. And despite a 20% monthly decline, the stock is still one of the most expensive on our list at 60 times earnings and 21 times sales.

A similar story to our previous selections appears on the KLAC chart. The 50-day moving average is under pressure, and other technicals like the MACD and RSI aren’t painting an optimistic picture. Expectations appear to be maxed out on KLA Corp, and even earnings beats no longer guarantee a positive stock reaction.