Micron, SanDisk Rise as Memory Stocks Attract Buyers

Micron shares jumped more than 3% and SanDisk rose about 2.5% in early premarket trading Monday after a sharp sell-off in semiconductor stocks last week. The Philadelphia Semiconductor Index fell 1.6% on Friday and moved more than 20% below its June peak, meeting the technical definition of a bear market. Micron closed the prior week roughly 30% below its June high, while SanDisk had retreated more than 28% from its June 25 peak; SanDisk had risen more than 600% earlier in 2026.

Traders who bought Monday morning cited the earlier drop as a chance to buy the dip, even as questions about valuations and future spending remain. Some market participants pointed to the concentration of memory positions as a reason for the large swings: concentrated bets can amplify changes in sentiment and create rapid reversals when buyers re-enter the market.

Analysts offered different perspectives on fundamentals. KeyBanc analyst John Vinh wrote that supply-chain checks in Asia showed ‘memory shortages remain persistent’ and projected tight conditions through 2027. KeyBanc forecasts DRAM prices could rise 15% to 20% sequentially in the third quarter and another 15% in the fourth. The firm also expects NAND prices to increase 30% to 40% this quarter, followed by an additional 15% rise.

Evercore ISI analyst Amit Daryanani told clients that long-term customer agreements are creating a ‘new memory paradigm,’ improving visibility into revenue, earnings and cash flow while clean-room capacity stays constrained. Market strategists described last week’s moves as a temporary wobble in demand for hardware used in artificial intelligence computing rather than the end of demand.

Supply-side developments and large capital plans remain key variables. Samsung and SK Hynix have announced hundreds of billions of dollars in new manufacturing projects, and Micron expanded its planned U.S. investment to more than $250 billion through 2035. Those projects will take years to add new output. Estimates suggest China’s ChangXin Memory Technologies could provide about 30% of net DRAM wafer additions through 2028.

Rising memory prices affect end customers. Higher costs for DRAM, high-bandwidth memory and NAND increase the expense of AI infrastructure and add pressure on hyperscalers and cloud providers that are managing large capital programs. Investors say they will watch supply ramps, pricing trends and the adoption of long-term contracts as the market adjusts to both constrained capacity and major new investment plans.