Shares in Micron Technology took an 11% hit last week following a string of downbeat analyst reports that sent shivers through the sector.

The problem is that the current cycle for the two main types of memory chips-DRAM (dynamic random access memory) and NAND (meaning ‘not and ‘ or flash memory)-looks to have peaked. The memory market is now awash with oversupply and chip prices are expected to crater.

More optimistic analysts argue that the coming downturn is already priced into the stock (which now trades at just over 4x forward earnings), but with a cloud hanging over the sector even hardy investors are heading for the exits.