Micron, SanDisk Rally As Yields Ease, Memory Prices Firm

Micron Technology rose about 2% and SanDisk gained about 3% in premarket trading as Treasury yields eased ahead of the August jobs report. Analysts cited firm DRAM and NAND pricing, rising AI-driven memory demand and higher earnings estimates.

Lower Treasury yields reduced pressure on growth-oriented semiconductor stocks after earlier weakness, making shares more attractive to some investors.

Industry data showed global DRAM revenue rose 57% quarter on quarter and NAND revenue rose 70% in the latest quarter. Micron increased its DRAM market share to 24% and its NAND share to 15% during the quarter.

Mizuho analyst Vijay Rakesh maintained an Outperform rating on Micron, citing elevated aggregate DRAM demand that supports the company’s outlook.

Some analysts have questioned whether future AI accelerators will require less high-bandwidth memory (HBM) per chip. UBS analyst Timothy Arcuri argued that if manufacturers ship far more accelerator chips, total HBM consumption could still rise even if per-chip memory falls. UBS raised its forecast for HBM average selling-price growth to about 79% year on year from 67% and noted improving conditions for NAND as server and storage SSD demand strengthens.

Nvidia disclosed $279 billion in supply and capacity commitments, largely tied to memory and manufacturing. For Micron, revenue opportunities include memory used across full data-center systems as well as HBM attached to GPUs.

Bernstein analyst Mark Newman maintained an Outperform rating on SanDisk, raising his price target to $3,000 from $1,700 and boosting fiscal 2027 earnings estimates on stronger NAND average selling prices. SanDisk’s new long-term supply agreements include pricing protections and upfront customer commitments.

Chinese suppliers have gained share: YMTC’s global NAND share rose to 14% from 9% year on year, while SanDisk’s share fell to 11% from 13%. CXMT also increased its DRAM presence. Analysts warned that added capacity could weaken pricing power.

Investors treating memory stocks like high-growth AI names can see larger valuation moves when Treasury yields shift. With yields easing and analysts revising estimates, Micron and SanDisk shares moved higher in premarket trading.