Micron, SanDisk and Western Digital fell after Nvidia results

Shares of Micron Technology, SanDisk and Western Digital declined on Thursday even after Nvidia posted strong quarterly results and an aggressive revenue forecast.

Nvidia reported fiscal second-quarter revenue of $96.22 billion, up 106% from a year earlier. Data-center revenue reached $89 billion. The company guided roughly $108 billion for the current quarter, plus or minus 2%.

Micron shares fell about 2% as investors raised doubts about the company’s ability to scale high-bandwidth memory (HBM) shipments. Micron began volume shipments of a 36-gigabyte HBM4 in the first quarter for Nvidia’s Vera Rubin platform. That HBM4 offers more than 2.8 terabytes per second of bandwidth and is over 20% more power efficient than Micron’s prior HBM3E product. Micron reported fiscal third-quarter revenue of $41.46 billion, up from $23.86 billion in the prior quarter. Operating cash flow more than doubled sequentially to $25.39 billion and adjusted free cash flow reached $18.3 billion.

Analyst coverage of Micron has varied. BMO initiated coverage with a $1,300 price target on Aug. 20. Mizuho trimmed its target to $1,300 from $1,375 on Aug. 25. The average price target among 47 analysts surveyed stood at $1,515, with 43 rating the stock Buy or Strong Buy.

SanDisk shares fell about 1.7% after SanDisk and partner Kioxia announced plans to invest more than $31 billion in Japan through 2032, subject to government support. The spending is planned to expand infrastructure at Kioxia’s Yokkaichi and Kitakami plants and to support related technology development for NAND flash supply. The two companies said their joint venture has invested more than $50 billion in Japan over the past 25 years and that the joint venture framework at Yokkaichi was extended through December 2034 earlier this year.

Western Digital initially rose after Nvidia’s results but then reversed, with shares falling roughly 3.6% to $452 following a downgrade from Buy to Hold by Summit Insights.

High-bandwidth memory supplies accelerators with large volumes of data at low latency and is used in AI servers. The trading on Thursday reflected investor attention to company-specific production plans, capital spending and analyst revisions even as sector demand for AI components remained strong.