Memory Stocks Surge, SanDisk Up 27% to New High
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Should l Buy MU?
Source: CNBC
- Surge in Memory Stocks: SanDisk shares soared 27% on Tuesday, reaching a new high, while Western Digital and Micron rose approximately 17% and 10%, respectively, indicating strong market demand and shortages for memory chips.
- Market Drivers: Jim Cramer highlighted that the surge in memory stocks is driven by a shortage of machines that produce memory chips, coupled with panic buying and a short squeeze, further propelling these companies' stock prices.
- Optimistic Industry Outlook: With increasing demand for storage, investor sentiment towards the memory sector remains optimistic, potentially attracting more capital into this area and driving long-term growth for related companies.
- Economic Data Focus: The market will closely watch the upcoming ADP jobs report, which is expected to show an addition of 48,000 jobs, potentially influencing overall market sentiment and the performance of memory stocks.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 420.950
Low
235.00
Averages
336.12
High
500.00
Current: 420.950
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology's Stock Soars 250% Amid AI Demand Surge
- Stock Surge: Micron Technology's stock has skyrocketed 250% since September, achieving a market cap exceeding $460 billion, reflecting strong market confidence in its future growth and raising questions about its potential to reach a $1 trillion valuation soon.
- Demand Drivers: The surge in demand for high bandwidth memory (HBM), particularly for AI training and inference, has led hyperscalers to increase their chip budgets, directly boosting Micron's sales, with projected earnings per share reaching $8.42 in 2026.
- Price Increases: Due to a shortage of DRAM memory chips, Micron's average selling price rose 20% sequentially in Q1, with gross margins expanding from 46% to 57%, enhancing the company's profitability and competitive position in a fierce market.
- Future Outlook: While Micron plans to invest $20 billion in capital expenditures for fiscal 2026, the cyclical nature of the industry suggests potential volatility in its earnings, with analysts raising their earnings expectations for 2026 and 2027 to $33.73 and $43.54 per share, respectively.
See More
Micron Invests $50 Billion in New Factories
- Massive Investment: Micron plans to invest $50 billion in Boise, Idaho, to build two new 600,000-square-foot chip factories, expected to open in mid-2027 and by the end of 2028, aimed at addressing the unprecedented global DRAM supply tightness.
- Global Expansion: In addition to the Boise factories, Micron is constructing a $100 billion facility in Syracuse, NY, and a $9.6 billion factory in Hiroshima, Japan, bringing total investments to $200 billion to break the AI memory bottleneck.
- Cash Flow and Financial Pressure: Although Micron generates over $22 billion in cash flow before capital expenditures, its cash reserves are only around $10 billion, indicating significant financial pressure that could impact future stability amid aggressive expansion plans.
- Market Reaction Volatility: Following the investment announcement, Micron's stock fell 3% but rebounded by 6.9%, reflecting market confidence in its long-term growth potential, although short-term risks related to DRAM price fluctuations remain a concern.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
AI Industry Leaders Still Have Room to Grow
- Micron's Strong Growth: Micron Technology (MU) has surged 47% year-to-date and 320% over the past year, primarily driven by high demand from AI chipmakers, showcasing its robust position in the AI infrastructure market.
- Outstanding Financial Performance: In its Q1 FY26 report, Micron reported a 57% revenue growth rate and nearly tripled profits, with optimistic guidance suggesting new sales and profitability records in Q2, indicating significant future growth potential.
- Amazon's Lagging Returns: Despite a 10% decline over the past year, Amazon (AMZN) continues to see total sales and profits grow, particularly with AWS and online advertising segments up 14% and 22% year-over-year, highlighting the long-term value of its AI investments.
- Microsoft's Solid Finances Amid Correction: Microsoft (MSFT) achieved a 17% revenue growth and a 60% net income increase in Q2 FY26, yet its stock has fallen 17% year-to-date; however, the strong performance of its cloud computing business supports future growth prospects.
See More
US Stocks Decline Amid AI Outlook Concerns
- Market Decline: The S&P 500 Index fell by 0.44%, the Dow Jones by 0.57%, and the Nasdaq 100 by 0.66%, reflecting market concerns over the outlook for artificial intelligence, particularly impacting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Weekly initial jobless claims dropped to 206,000, a five-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, suggesting economic pressures that could affect market confidence.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth projected at 8.4%, providing some support for the market, although overall sentiment remains cautious.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 1% to a three-week high due to U.S. military buildup in the Middle East, heightening inflation concerns and potentially increasing expectations for Fed rate hikes.
See More
David Tepper Reduces Nvidia Stake, Increases Micron Holdings
- Nvidia Stake Reduction: David Tepper sold 200,000 shares of Nvidia in Q4, reducing his holdings to 1.7 million shares, which dropped Nvidia from Appaloosa's fourth-largest position to seventh, indicating concerns about an AI bubble and competitive pressures.
- Micron Technology Increase: Tepper purchased 1 million shares of Micron during Q4, tripling his position in just three months, reflecting confidence in the potential 32-fold growth of the high-bandwidth memory market.
- Strong Market Demand: As the world's second-largest supplier of high-bandwidth memory, Micron benefits from strong demand for AI infrastructure, leading to an 18-percentage-point increase in gross margin in Q1 and a 160% year-over-year increase in operating cash flow, showcasing its pricing power.
- Attractive Valuation: Despite Micron's stock price nearly quadrupling since September, its forward P/E ratio remains below 10, attracting successful investors like Tepper, indicating continued investment appeal in the AI sector.
See More
Micron Technology's Stock Soars 250% Amid AI Demand Surge
- Stock Surge: Micron Technology's stock has skyrocketed 250% since September, achieving a market cap exceeding $460 billion, reflecting strong market confidence in its future growth and raising questions about its potential to reach a $1 trillion valuation soon.
- Demand Drivers: The surge in demand for high bandwidth memory (HBM), particularly for AI training and inference, has led hyperscalers to increase their chip budgets, directly boosting Micron's sales, with projected earnings per share reaching $8.42 in 2026.
- Price Increases: Due to a shortage of DRAM memory chips, Micron's average selling price rose 20% sequentially in Q1, with gross margins expanding from 46% to 57%, enhancing the company's profitability and competitive position in a fierce market.
- Future Outlook: While Micron plans to invest $20 billion in capital expenditures for fiscal 2026, the cyclical nature of the industry suggests potential volatility in its earnings, with analysts raising their earnings expectations for 2026 and 2027 to $33.73 and $43.54 per share, respectively.
See More
Micron Invests $50 Billion in New Factories
- Massive Investment: Micron plans to invest $50 billion in Boise, Idaho, to build two new 600,000-square-foot chip factories, expected to open in mid-2027 and by the end of 2028, aimed at addressing the unprecedented global DRAM supply tightness.
- Global Expansion: In addition to the Boise factories, Micron is constructing a $100 billion facility in Syracuse, NY, and a $9.6 billion factory in Hiroshima, Japan, bringing total investments to $200 billion to break the AI memory bottleneck.
- Cash Flow and Financial Pressure: Although Micron generates over $22 billion in cash flow before capital expenditures, its cash reserves are only around $10 billion, indicating significant financial pressure that could impact future stability amid aggressive expansion plans.
- Market Reaction Volatility: Following the investment announcement, Micron's stock fell 3% but rebounded by 6.9%, reflecting market confidence in its long-term growth potential, although short-term risks related to DRAM price fluctuations remain a concern.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
AI Industry Leaders Still Have Room to Grow
- Micron's Strong Growth: Micron Technology (MU) has surged 47% year-to-date and 320% over the past year, primarily driven by high demand from AI chipmakers, showcasing its robust position in the AI infrastructure market.
- Outstanding Financial Performance: In its Q1 FY26 report, Micron reported a 57% revenue growth rate and nearly tripled profits, with optimistic guidance suggesting new sales and profitability records in Q2, indicating significant future growth potential.
- Amazon's Lagging Returns: Despite a 10% decline over the past year, Amazon (AMZN) continues to see total sales and profits grow, particularly with AWS and online advertising segments up 14% and 22% year-over-year, highlighting the long-term value of its AI investments.
- Microsoft's Solid Finances Amid Correction: Microsoft (MSFT) achieved a 17% revenue growth and a 60% net income increase in Q2 FY26, yet its stock has fallen 17% year-to-date; however, the strong performance of its cloud computing business supports future growth prospects.
See More
US Stocks Decline Amid AI Outlook Concerns
- Market Decline: The S&P 500 Index fell by 0.44%, the Dow Jones by 0.57%, and the Nasdaq 100 by 0.66%, reflecting market concerns over the outlook for artificial intelligence, particularly impacting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Weekly initial jobless claims dropped to 206,000, a five-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, suggesting economic pressures that could affect market confidence.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth projected at 8.4%, providing some support for the market, although overall sentiment remains cautious.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 1% to a three-week high due to U.S. military buildup in the Middle East, heightening inflation concerns and potentially increasing expectations for Fed rate hikes.
See More
David Tepper Reduces Nvidia Stake, Increases Micron Holdings
- Nvidia Stake Reduction: David Tepper sold 200,000 shares of Nvidia in Q4, reducing his holdings to 1.7 million shares, which dropped Nvidia from Appaloosa's fourth-largest position to seventh, indicating concerns about an AI bubble and competitive pressures.
- Micron Technology Increase: Tepper purchased 1 million shares of Micron during Q4, tripling his position in just three months, reflecting confidence in the potential 32-fold growth of the high-bandwidth memory market.
- Strong Market Demand: As the world's second-largest supplier of high-bandwidth memory, Micron benefits from strong demand for AI infrastructure, leading to an 18-percentage-point increase in gross margin in Q1 and a 160% year-over-year increase in operating cash flow, showcasing its pricing power.
- Attractive Valuation: Despite Micron's stock price nearly quadrupling since September, its forward P/E ratio remains below 10, attracting successful investors like Tepper, indicating continued investment appeal in the AI sector.
See More
