SanDisk Soars 9%, Western Digital Rallies 5%, Micron Rises 3% as Memory Trade Reawakens
SanDisk, Western Digital, and Micron Technology stocks rebounded sharply on Thursday after a week of losses, with SanDisk surging 9%, Western Digital up 5%, and Micron rising 3%. The rally reflects renewed investor interest in AI-driven memory demand, though valuation concerns and volatile pricing cycles remain key risks for the sector.
Memory stocks SanDisk, Western Digital, and Micron Technology saw sharp gains on Thursday, reversing a brutal week of declines. SanDisk shares climbed 9%, Western Digital rose 5%, and Micron Technology advanced 3%, with SanDisk leading the rebound after a 4% weekly drop, Western Digital down 7%, and Micron off 9%. The recovery follows a week of heavy selling but aligns with AI-driven demand for high-bandwidth memory. SanDisk’s NAND-focused business has surged 3,852% over the past year, while Micron’s Cloud Memory Business Unit reported $5.284 billion in Q1 FY2026 revenue with a 66% gross margin. Western Digital, now an HDD specialist post-spinoff, hit a 51% non-GAAP gross margin in Q3 FY2026, driven by AI workloads generating persistent storage needs. Leadership within the group has shifted, with SanDisk outperforming after a smaller pullback, while Micron lagged in the rebound. Analysts suggest the market may favor NAND exposure over DRAM/HBM at this stage, though momentum trading could also play a role. The bull case rests on AI infrastructure spending, with Micron citing strong order books extending into 2027 and SanDisk guiding Q4 FY2026 revenue to $7.75 billion–$8.25 billion. However, valuation risks persist: SanDisk is up 543% year-to-date, Micron 166%, and Western Digital 179%, amid historically volatile memory pricing cycles. Investor sentiment remains mixed, with Reddit’s WallStreetBets community showing bearish leanings despite recent gains. Traders will watch whether today’s rally holds, particularly for SanDisk near multi-week highs, as further guidance from hyperscalers or cloud buyers could shape the next move.
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